Which of the following equations is true in an open economy?

A) Net exports = -Financial account balance.
B) National saving = net capital flows.
C) Net exports = net foreign investment.
D) Private saving = net foreign investment + domestic investment.


C

Economics

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Medicaid is the most expensive program that the government runs that provides benefits to the poor.

A. True B. False C. Uncertain

Economics

Concerning auctions, what is the definition of a "common-values setting"?

a. Bids are submitted using open outcries. b. Bids are submitted simultaneously, and the highest is selected as the winner. c. Bidders value the object the same, but are uncertain as to what that value is. d. Bids are submitted by syndicates of cooperating bidders.

Economics

Assume the money market is initially in equilibrium. If the price level decreases, then according to liquidity preference theory there is an excess

a. supply of money until the interest rate increases. b. supply of money until the interest rate decreases. c. demand for money until the interest rate increases. d. demand for money until the interest rate decreases.

Economics

In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 5 percent, then real GDP must be:

A. $96 trillion. B. $104 trillion. C. $98 trillion. D. $102 trillion.

Economics