If there is a decrease in world investment ________.
net exports would decrease |
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domestic saving would rise |
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domestic output would go up |
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all of the above |
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none of the above |
Answer
net exports would decrease
the decreased investment decreases the trade and the net export
decreases because of the decrease in world investment.
If there is a decrease in world investment ________. net exports would decrease domestic saving would...
11. A country has $70 billion of exports, domestic investment is $390 billion and $415 billion of saving. Therefore, A. net capital outflow is positive $25 billion. B. domestic investment is negative $25 billion. C. domestic investment is positive $95 billion. D. domestic investment is negative $95 billion. E. None of the above is correct. 6. Other things the same, which of the following could explain a rise in Russia’s net capital outflow? A. interest rates on Russian bonds rise...
The net export function illustrates that:A) net exports are a positive function of domestic income.B) net exports are independent of domestic income.C) net exports are a negative function of domestic income.D) imports are independent of domestic income.E) exports are independent of foreign income. Suppose the marginal propensity to import for country A is 0.4. Calculate the change in total value of imports of the country if national income increases by $100,000.A) $16,000B) $20,000C) $60,000D) $40,000E) $25,000 An MPI of 0.4 indicates that...
An increase in the budget surplus a. raises net exports and domestic investment. b. raises net exports and reduces domestic investment. c. reduces net exports and domestic investment.
The supply of loanable funds (the source of funds) consists of Question 1 options: a) Total domestic saving and net foreign saving. b) Investment and net exports. c) Total domestic saving and investment. d) Only total domestic saving. Question 2 (1 point) Saved Assuming all else held constant, an increase in net exports will lead to Question 2 options: a) an increase in net foreign saving. b) a decrease in the source of funds. c) a decrease in the trade...
4) Calculate the values for government purchases (G), private domestic saving (S), and private domestic investment (1) from the following information (all variables are in billions of dollars). National income Disposable income Consumption Budget Deficit Net Exports Y = 5,200 YD = 4,400 C = 4,100 BD = 150 NX = 110
if domestic savings exceeds investment, then net exports are ________ and net capital outflows are __________. a) positive; positive b) positive; negative c) negative; positive d) negative; negative
Question 36 (1 point) Gross investment 43 Personal taxes 23 Net investment Personal saving 35 Net exports National income 278 Canadian exports 20 Government expenditure Disposable income 243 Net income of nonfarm 45 unincorporated business Refer to the above information. The gross domestic product is: (Type in only numbers. NO dollar sign 71 Your Answer: Answer
Assume that the world consists only of the United States and Germany and that trade between them is balanced, so that neither country runs a trade deficit or surplus. If the euro falls in value relative to the U.S. dollar, with all else remaining unchanged, what will occur? U.S. exports to Germany will ______, and U.S. imports from Germany will ______. These changes in trade will cause net exports (NX) in the United States to ______. The United States would...
(6) At a world price of Pw, the quantity of exports in the graph below is given by __________. QSD − QDD QDD − QSD Pw − P* SD − DD (7) Suppose France is an open economy and cannot influence the world price. If the world price is below the domestic equilibrium price, how would an increase in domestic supply affect the price and quantity demanded? It would increase the price and the quantity demanded. It...
Some data as follows: Gross domestic private investment: 1,000 Net foreign investment: 120 Public savings: 410 Company retained earnings: 130 Depreciation: 800 Net exports: - 100 Government savings: - 220 How much is national saving (national saving)? a. 320. b. 900 c. 990. d. 1,000 e. 1,120. the answer is E why?