A country has $20 billion of domestic investment and net capital outflow of $10 billion. What is saving?
a. $10 billion
b. $30 billion
c. -$20 billion
d. -$30 billion
b
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Behavioral economists examine choices that consumers make that are not economically rational
Economists generally assume that people are rational; that is, they weigh the benefits and costs of an action and choose an action only if the benefits outweigh the costs. Why do consumers not act rationally when the result is that they make themselves worse off?
A problem with the infant industry argument is that
A) it is too restrictive in targeting new industries to protect. B) it does not protect the most important new industries in a country. C) it is almost impossible to eliminate the tariff once the industry matures. D) it allows infant industries to mature so that tariffs can be eliminated.
A student is working on a group class-project where the same grade is assigned to everyone in the group. He chooses to not contribute to the project. What term best describes this situation?
a. Moral hazard b. Tragedy of the Commons c. Public good problem d. Free Rider Problem
Chinese private companies get their capital largely from:
a. The Whenzou market b. Private banks c. IPOs d. State banks e. Government grants