A country recently had saving of 250 billion euro and domestic investment of 400 billion euro. What was the value of this country's net exports? Show your work
saving = investment + net capital outflow
250 billion euro = 400 billion euro + net capital outflow
-150 billion euro = net capital outflow
net exports = -150 billion euro because net capital outflow = net exports
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Figure 3-7
What is the opportunity cost of moving from point B to point A in Figure 3-7?
A. 20 units of X B. 50 units of X C. 25 units of X D. 75 units of X
What reason do economists believe that megabanks are forming?
A) Megabanks enable economies of scale in information processing which allows them to better serve their customers. B) Megabanks create economies of scale which allow the banks to make riskier investment and increase profits. C) Megabanks can compensate for their economies of scale by diversifying into many countries. D) Megabanks allow investors more opportunities and have continued to grow by using their economies of scale to overwhelm their competition.
U.S. government purchases of gold are officially carried out by the
A) New York Federal Reserve Bank. B) Federal Open Market Committee. C) Federal Deposit Insurance Corporation. D) U.S. Treasury.
The above figure shows the market demand curve for telecommunication while driving one's car (time spent on the car phone). If the price were $2.50, consumer surplus equals
A) $301.00. B) $924.50. C) $1,225.50. D) $0