Asked by
Tatum Klinger
on Nov 16, 2024
Verified
If a country has positive net capital outflows, then its net exports are
A) positive, and its saving is larger than its domestic investment.
B) positive, and its saving is smaller than its domestic investment.
C) negative, and its saving is larger than its domestic investment.
D) negative, and its saving is smaller than its domestic investment.
Net Capital Outflows
The difference between the domestic money invested abroad and the foreign investment within a country over a specific period, indicating the flow of capital across borders.
Net Exports
The value of a country's exports minus its imports, which is a component of a country's gross domestic product.
Domestic Investment
Financial contributions toward assets and projects within one's own country, aimed at enhancing economic growth.
- Gain insight into the notions of saving and investing, and how they affect a country's trade equilibrium.
- Understand the principles behind the law of one price and how it applies to international economics.
Verified Answer
JA
Learning Objectives
- Gain insight into the notions of saving and investing, and how they affect a country's trade equilibrium.
- Understand the principles behind the law of one price and how it applies to international economics.