Which of the following statements is incorrect for an open economy?
a. A country can have a trade deficit, trade surplus, or balanced trade.
b. A country that has a trade deficit has positive net capital outflow.
c. Net exports must equal net capital outflow.
d. National saving equals domestic investment plus net capital outflow.
b
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From 2007 to 2012, the amount of assets owned by the Fed approximately
A) doubled. B) tripled. C) quadrupled. D) quintupled.
Briefly explain why payroll taxes are a regressive tax.
What will be an ideal response?
Which of the following transactions would be excluded in the capital account?
A. A Japanese citizen purchases a U.S. Treasury bill. B. A Japanese citizen purchases an office building in Manhattan. C. A U.S. citizen purchases a share of stock from a Japanese company. D. An American purchases a Toyota.
Table 9.1 Disposable IncomeTotal Consumption(Billions of dollars per year)(Billions of dollars per year)$0$50200210What is the rate of saving when income equals $1,000 billion in Table 9.1?
A. $100 billion. B. $250 billion. C. $150 billion. D. Zero.