Studies indicate that net exports and net capital outflows tend to be equal. 1. Explain why net exports and net capital outflows always tend to be equal. 2. Explain how a change in interest rates can lead to changes in net exports?
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Studies indicate that net exports and net capital outflows tend to be equal.
1. Explain why net exports and net capital outflows always tend to be equal.
2. Explain how a change in interest rates can lead to changes in net exports?
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- What happens to the level of net exports in an economy when income in that economy increases? What happens to the level of net exports in an economy when income in other economies increases?Under a closed system, when net exports equals 0, what must be true about investment spending? A Investment Consumption B Investment = Savings (C) Investment = Government Spending D) Investment Government spending - taxesExplain how an increase in the price level changes interest rates. How does this change in interest rates lead to changes in investment and net exports?
- Suppose a country imposes an import tariff (as a topical real-world example, think about the U.S. under President Donald Trump imposing tariffs on China and a host of other countries). Answer the following questions and 1. What is the effect on imports, exports, and net exports? 2. What is the effect on net foreign investment and the exchange rate?Since the early 2000s, the U.S. net exports of services has _____________ and U.S. net exports of goods has _____________. a. increased, decreased b. decreased, increased c. increased, increased d. decreased, decreasedDiscuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, and whether the impact is to increase or decrease GDP. a. Charles buys a second-hand textbook from Tim. b. When Charles bought the book, he paid Sarah $10 to collect it from Tim c. Thomas buys a new house d. Your firm sells meat to Indonesia e. The fish and chips shop down the road buys fish to make meals for diners f. The same shop buys a deep fryer to fry fish for meals.
- Suppose there is an increase in foreign output. Show the effect on the domestic economy . What is the effect on domestic output? On domestic net exports?Using the data given in Table 1, compute the net exports. Briefly discuss your result and indicate whether there is a trade surplus or a trade deficit in the current account.Swedish net exports will when the price level in Sweden drops, due to the decrease; international trade effect decrease; exchange rate effect increase; PPP effect increase; exchange rate effect increase; international trade effect
- Mark, a U.S. citizen, buys stock in a British Shipping company. In macroeconomics language, this purchase is an example of: Group of answer choices investment for Mark and U.S. net capital inflow. investment for Mark and U.S. net capital outflow. saving for Mark and U.S. net capital inflow. saving for Mark and U.S. net capital outflow.Please solve using a national income accounting That tax increases (with no change in transfer payments) will change net exports, government spending and the saving-investment balance9:22 KB/S f Topic 1.pptx 5. You are given the following information about an economy: Gross private domestic investment = 40 Government purchases of goods and services = 30. Gross national product (GNP) = 200 Current account balance = -20 Taxes = 60 Government transfer payments to the domestic private sector = 25 Interest payments from the government to the domestic private sector = 15 (Assume all interest payments by the government go to domestic households.) Factor income received from rest of world = 7 Factor payments made to rest of wor = 9 Find the following, assuming that government invest- ment is zero: a. Consumption b. Net exports c. GDP d. Net factor payments from abroad e. Private saving f. Government saving g. National saving the fellowing infermalion, Calulate GF ablo Income'ad lriveate Sawing: Conqerplion 4 Soo -6,300 ensilios of Empleyees eh lerron.