If net exports are negative, then
a. net capital outflow is positive (indicating an inflow of capital), so foreign assets bought by Americans are greater than American assets bought by foreigners.
b. net capital outflow is positive (indicating an inflow of capital), so American assets bought by foreigners are greater than foreign assets bought by Americans.
c. net capital outflow is negative (indicating an outflow of capital), so foreign assets bought by Americans are greater than American assets bought by foreigners.
d. net capital outflow is negative (indicating an outflow of capital), so American assets bought by foreigners are greater than foreign assets bought by Americans.
D
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When the ratio of domestic prices to foreign prices falls:
A) the real exchange rate depreciates only when the nominal exchange rate depreciates. B) the real exchange rate depreciates even when the nominal exchange rate is constant. C) the real exchange rate appreciates. D) the real exchange rate depreciates only when the nominal exchange rate appreciates.
In a nation with a market economy, the consumer decides which products will be successful.
a. true b. false
The tolerance of bribe-taking by government officials
A. reduces the need for government to impose taxes on poor people. B. reduces government expenditures because public employees can be paid less. C. reduces economic efficiency because rules governing property rights are not regularly enforced. D. reduces economic uncertainty because all investors are aware of the practice.
The Clayton Act
A. made tying contracts illegal and banned price discrimination. B. called for the establishment of the Federal Trade Commission. C. banned the use of barriers to entry to prevent monopolization. D. declared monopoly and trade restraints illegal.