If Chileans buy more U.S. stocks and bonds and U.S. residents buy more Chilean wine, then
a. both U.S. net exports and U.S. net capital outflows rise.
b. U.S. net exports rise and U.S. net capital outflows fall.
c. U.S. net exports fall and U.S. net capital outflows rise.
d. both U.S. net exports and U.S. net capital outflows fall.
d
You might also like to view...
The ground rules, customs, and conventions that govern the behavior of market participants are often referred to as institutions
Indicate whether the statement is true or false
GDP will clearly increase if
A) the market value of illegal exchanges increases. B) the money supply increases. C) the market value of final goods and services increases. D) taxes increase.
Figure 5-5 shows a consumer budget line for French fries and hamburgers. If the household has $20 to spend, the price of hamburgers is
A. $1. B. $2. C. $4. D. $2.50.
Refer to the figure above. Domestic producers of this product in A would most prefer
A) a customs union with C. B) a customs union with B. C) a free trade agreement with both B and C. D) no agreement with either country.