Other things the same, if a country has a trade deficit and saving rises,
a. net capital outflow rises, so the trade deficit increases.
b. net capital outflow rises, so the trade deficit decreases.
c. net capital outflow falls, so the trade deficit increases.
d. net capital outflow falls, so the trade deficit decreases.
b
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Refer to Figure 11.2. Suppose that Ca = 40, MPC = 0.8, I = 10. The value of autonomous consumption is
A) 10. B) 40. C) 50. D) 80.
The long-run Phillips curve is ________ than the short-run Phillips curve
A) flatter B) steeper C) more volatile D) less stable
A country's indifference curve describes combinations of goods that:
a. a country can purchase. b. yield equal satisfaction to a country. c. yield satisfaction to a country. d. a country can produce.
Income increases cause no change in a household's choice set.
Answer the following statement true (T) or false (F)