Exam 18: Open Economy Macroeconomics Basic Concepts: The International Flows of Goods and Capital

If sales of Saudi Arabian oil to the rest of the world increase and Saudis use the proceeds to buy foreign goods,which of the following increases?

A Japanese bank buys U.S.government bonds,this purchase

Suppose that U.S.citizens purchase more cars made in Korea,and Koreans purchase more bonds issued by U.S.corporations.Other things the same,these actions

Citizens in India buy music from the U.S.To do so they use Indian rupees to purchase U.S.dollars.If U.S.citizens hold these rupees rather than spending them,what happens to U.S.net exports and U.S.net capital outflows?

A U.S.company uses U.K.pounds it already owned to purchase bonds issued by a company in the U.K.Which of these countries has an increase in net capital outflow?

In which of the following situations must national saving rise?

Mike,a U.S.citizen,buys $1,000 worth of olives from Greece.By itself this purchase

Which of the following both reduce net exports?

Matt and Melinda are American residents.Matt buys stock issued by a German corporation.Melinda opens a shoe factory in Panama.Whose purchase,by itself,increases the U.S.'s net capital outflow?

When making investment decisions,investors

A country has a trade deficit.Its

A British grocery chain uses previously obtained U.S.dollars to purchase oranges from the United States.This transaction

Mark,a U.S.citizen,buys stock in a British Shipping company.This purchase is an example of

John,a U.S.citizen,opens up a Sports bar in Tokyo.This is an example of U.S.

A country has $60 million of saving and domestic investment of $40 million.Net exports are

In an open economy,gross domestic product equals $1,970 billion,government expenditure equals $300 billion,investment equals $500 billion,and net capital outflow equals $280 billion.What is consumption expenditure?

If a country has Y > C + I + G,then

A country has $20 billion of domestic investment and net capital outflow of $10 billion.What is saving?

A firm in China sells toys to a U.S.department store chain.Other things the same,these sales

Which of the following is correct?