U.S. export spending is not affected by U.S. real income but is influenced by the economic activity of its major trading partners and the exchange rate, hence export spending is taken as autonomous
Indicate whether the statement is true or false
TRUE
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If for a given year nominal GDP is $2000 billion and real GDP is $1500 billion, then the GDP price index is
A) 100. B) 1.33. C) 750. D) 0.75. E) 133.
A country has imports of goods and services at $2,000 billion. The interest paid to the rest of the world is $500 billion. The interest received from the rest of the world is $400 billion. The decrease in official reserves is $10 billion
The government sector balance is $200 billion, savings is $1,800 billion, investment is $2,000 billion, and net transfers is zero. What are net exports? A) $0 B) -$100 billion C) -$200 billion D) $100 billion E) $200 billion
In the mid 1990s countries of the world exported $6.5 trillion dollars worth of goods and services. How large were total world imports of goods and services during this period? Explain your answer
In the circular flow diagram, households sell _________ to business firms.
a. information b. products c. services d. labor