If the United States has a $300 billion trade deficit, then there must be:
A. net capital inflows of $300 billion.
B. net capital outflows of $300 billion.
C. net capital inflows of -$300 billion.
D. no capital inflows or capital outflows.
Answer: A
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Which of the following is an example of a good produced under monopoly?
A) CDs B) Books C) Aerated drinks D) Patented software
As units of input are added to the production process, the average product
a. rises and then declines. b. declines and then rises. c. remains the same. d. is always greater than the marginal product.
Which of the following is NOT considered a payment in the balance of payments?
A) capital outflows B) U.S. foreign aid to other countries C) imports of goods D) exports of services
In the long run, a leftward shift of the aggregate demand curve will lead to a(n):
a. increase in equilibrium output but will not change the price level in an economy. b. increase in the price level as well as the equilibrium output in an economy. c. decrease in the price level but will leave the equilibrium output unchanged in an economy. d. increase in the price level but will leave the equilibrium output unchanged in an economy. e. decrease in the price level as well as the equilibrium output in an economy.