Which of the following is NOT true about the national income identity given by the equation:
A) If CA is positive, national saving finances the purchase of our goods by foreign users.
B) If CA is negative, our investment exceeds our national savings.
C) A negative CA may imply that foreigners have confidence in the U.S. economy.
D) If CA is negative and large, a country risks foreigners owning a large piece of its assets.
E) None of the above.
E
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The price elasticity of demand measures consumer responsiveness to a price change
a. True b. False Indicate whether the statement is true or false
A general increase in the price level is called:
A. hyperinflation. B. deflation. C. inflation D. devaluation.
Refer to the above figure. Perfect income equality is shown by
A. curve A. B. the horizontal axis. C. the vertical axis. D. curve D.
Diminishing marginal returns refers to the fact that
a. holding other inputs constant, additional increases in labor lead to smaller changes in output. b. holding other inputs constant, additional increases in labor lead to lower output. c. additional increases in labor always lead to smaller changes in output d. the returns to labor fall as real wages rise.