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

In an open economy,gross domestic product equals $2,450 billion,consumption expenditure equals $1,390 billion,government expenditure equals $325 billion,investment equals $510 and net capital outflow equals $225 billion.What is national saving?

Suppose a country's net capital outflow does not change,but its investment rises by $250 billion.

A country has net capital outflow of $40 billion.Which of the following is consistent with this net capital outflow?

A U.S.citizen buys bonds issued by a construction equipment manufacturer in Poland.Her expenditures are U.S.

A country has $3 billion of domestic investment and net exports of -$2 billion.What is its saving?

If a country's purchases of foreign assets exceeds foreign purchases of domestic assets,that country has

If U.S.residents purchase $600 billion worth of foreign assets and foreigners purchase $300 billion worth of U.S.assets,

Which of the following statements is correct for an open economy with a trade surplus?

If a U.S.shirt maker purchases cotton from Egypt,U.S.net exports

A farmer in Mexico purchases a tractor made in the U.S.This purchase is an example of

A U.S.retailer buys shoes from an Italian company.The Italian firm then uses all of the revenues to buy leather from the U.S.These transactions

Which of the following is correct? Since 1950

Net capital outflow equals the difference between a country's

A U.S.firm opens a factory that produces power tools in Korea.

A country sells more goods and services to foreign countries than it buys from them.It has

A U.S.mutual fund buys stocks issued by a Columbian company.This purchase is an example of

From 1980-1987,U.S.net capital outflow as a percent of GDP became a

Suppose that more British decide to vacation in the U.S.and that the British purchase more U.S.Treasury bonds.Ignoring how payments are made for these purchases,

If a country's government reduced corruption and reformed its tax system so that businesses found operating there less risky,it's likely that this country's

A country has a trade deficit.Which of the following must also be true?