A negative balance in the capital and financial account means the economy is
A) lending to the rest of the world.
B) running a capital account surplus.
C) borrowing from the rest of the world.
D) importing more than it is exporting.
A
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In choice sets, intertemporal budget constraints illustrate consumption trade-offs over time.
Answer the following statement true (T) or false (F)
To derive net domestic product (NDP) from gross domestic product (GDP), we must subtract ________________ from GDP
A) the capital consumption allowance B) gross private domestic investment C) imports D) inventory investment E) the statistical discrepancy
As a whole, nations are better off after trade and specialization because:
A. nations can consume along their consumption possibilities curve, which is outside of their production possibilities curve. B. nations can consume along their consumption possibilities curve, which is inside of their production possibilities curve. C. nations can consume along their production possibilities curve, which is outside of their consumption possibilities curve. D. nations experience an inward shift of their production possibilities curve.
Suppose that the real return from operating factories in Canada rises relative to the real rate of return in the United States. Other things the same,
a. this will increases U.S. net capital outflow and decrease Canadian net capital outflow. b. this will decreases U.S. net capital outflow and increase Canadian net capital outflow. c. this will only increase U.S. net capital outflow. d. this will only increase Canadian net capital outflow.