If Canada's national saving exceeds its domestic investment, then Canada has
a. positive net capital outflows and negative net exports.
b. positive net capital outflows and positive net exports.
c. negative net capital outflows and negative net exports.
d. negative net capital outflows and positive net exports.
b
You might also like to view...
The potential for a financial breakdown at one financial institution to spread throughout the financial system is known as a
A) lending risk. B) systemic risk. C) moral hazard. D) liquidity risk.
Initially, demand-pull inflation will
A) increase both the price level and increase real GDP. B) shift the aggregate supply curve rightward. C) decrease potential GDP. D) increase the price level and decrease real GDP. E) increase the price level and not change real GDP.
Comparative advantage refers to a country's:
A. Ability to produce a specific good with fewer resources than another country. B. Monopoly power in the world market for a specific good. C. Ability to sell a specific good for a higher price than another country. D. Ability to produce a specific good at a lower opportunity cost than another country.
Answer the following statements true (T) or false (F)
1. A change in business taxes and regulation can affect production costs and aggregate supply. 2. If productivity increases, then the per-unit production cost decreases. 3. Macroeconomic equilibrium in the short run always occurs at full-employment GDP. 4. If the cost of resources decreases, then real domestic output will increase.