If U.S. net exports are negative, then net capital outflow is
a. positive, so foreign assets bought by Americans are greater than American assets bought by foreigners.
b. positive, so American assets bought by foreigners are greater than foreign assets bought by Americans.
c. negative, so foreign assets bought by Americans are greater than American assets bought by foreigners.
d. negative, so American assets bought by foreigners are greater than foreign assets bought by Americans.
d
You might also like to view...
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
An appeal to consumers to purchase union-made products represents an attempt to
a. increase the supply of union labor b. increase the demand for union labor c. decrease the supply of union labor d. decrease the quantity demanded of union labor e. decrease the demand for union labor
Governments have learned that a(n)
a. increased budget deficit tends to reduce interest rates and increase investment, thus increasing the growth of the capital stock b. reduced budget deficit tends to reduce interest rates and increase investment, thus increasing the growth of the capital stock c. reduced budget deficit tends to increase interest rates and increase investment, thus increasing the growth of the capital stock d. reduced budget deficit tends to increase interest rates and increase investment, thus reducing the growth of the capital stock e. increased budget deficit tends to increase interest rates and increase investment, thus reducing the growth of the capital stock
The returns from the home country and foreign country capital markets are equalized if:
a. the home country interest rates are higher. b. the foreign country interest rates are higher. c. the foreign country has a higher price level. d. both countries have no capital controls.