A country has net capital outflow of $40 billion. Which of the following is consistent with this net capital outflow?
a. It has -$40 billion of net exports.
b. Purchases of foreign assets by domestic residents exceed purchases of domestic assets by foreign residents by $40 billion.
c. Its saving is $35 billion and its domestic investment is $5 billion.
d. All of the above are consistent with a net capital outflow of $40 billion.
b
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A positive economic statement
a. contains personal and social value judgments b. is always a mathematical expression c. is never used by an economist d. is proper, provided the advocator is clear the position rests on personal assessment e. is an unbiased report of the facts of the economy
A "capitalist" is someone who:
A. owns stock. B. opens a retirement account. C. holds a treasury bond. D. All of these statements are true.
Which of the following statements is true?
A. According to the permanent income hypothesis, a person who received a windfall of say $100,000 would spend most of it that year. B. As disposable income rises, induced consumption falls. C. The minimum amount that people will spend if disposable income is zero is called induced consumption. D. A rapid increase in the prices of residential housing results in an increase in consumption due to the wealth effect.
Which of the following must be true if average total cost is rising?
A. Average fixed cost must be rising. B. Total fixed cost must be rising. C. Average variable cost must be falling. D. Marginal cost must be greater than average total cost.