Suppose the world had only two countries and domestic residents of country A purchased $50 billion of assets from country B and country B purchased $30 billion of assets from country A. What would the net capital outflows of both countries be?
a. $50 billion for country A and $30 billion for country B
b. $30 billion for country A and $50 billion for country B
c. $20 billion for country A and -$20 billion for country B
d. -$20 billion for country A and $20 billion for country B
c
You might also like to view...
Technical efficiency
A) ignores the values of the chooser. B) is a necessary precondition for the attainment of economic efficiency. C) is always attained if economic efficiency is achieved. D) is attained whenever the ratio of physical output to physical input is greater than unity. E) is easier to achieve than economic efficiency.
Of the following, which is CORRECT?
A) Nominal GDP does not change when the production of goods and services increases. B) Nominal GDP is not affected by changes in prices of goods and services. C) Nominal GDP increases when the prices of goods and services increase. D) Real GDP changes only when the prices of goods and services really change.
Refer to Table 2-11. South Korea has a comparative advantage in the production of
A) digital cameras. B) wheat. C) both products. D) neither product.
Why was running a budget deficit to build the U.S. highway system in the 1950s a benefit to the country?
a. The costs of building the highway system were so small that they were considered irrelevant. b. There were benefits of increasing potential GDP, so the increased costs were not considered. c. The benefits of it increasing potential GDP were greater than the increased costs of borrowing for the deficit. d. The costs of building the highways system were greater than the benefits of building the highway system.