Suppose that in the country of Mistania, investment spending increases from $1740 to $1940. There is no change in Mistania's private or public savings. According to the national saving and investment identity, what happens to the trade balance as investment spending increases? OTrade deficit goes up OTrade deficit goes down OStays the same
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- If a country is running a government budget surplus, why is (T - G) on the left side of the saving-investment identity?If domestic Investment increases, and there is no change in the amount of private and public saving, what must happen to the size of the trade deficit?Many think that the size of a trade deficit is due to a lack of competitiveness of domestic sectors, such as autos. Explain why this is not true.
- The macroeconomic view of a trade deficit implies that, other things equal, the imposition of a tariffwill reduce South Africa's trade deficit A Because exports will be promoted and imports cannot possibly changeB Because imports will be reduced and exports cannot possibly changeC Only if the tariff has no impact on South Africa's spending or incomeD Only if the tariff leads to increased income in South Africa relative to its spendingQUESTION 33 What happens when imports are more than exports? There is a; OA Trade deficit OB. Trade surplus OCTrade barrier OD.Trade quola QUESTION 34 The value of output of a KFC (an American owned company) in Japan is counted as part of GDP for OA USA OB. Japan and USA Japan O D-China QUESTION 35 In year 1 nominal GDP is $ 20 trillion and in year 2 nominal GDP is $ 24 trillion. What was the growth rate of nominal GDP between year 1 and 2? O A. 16.7% OB 83.3% OC.20%% O D.10.0% QUESTION 36 Given the diagram below which of the following statements is true? 4.00 300 250 200 150 1.00 012 1 4S62 .o10 1 12 13 415 Ority hosandh of dosee per moe O A. When the price is $2 there is a surplus of 4 units O B. When the price is $1:50 the quantity demanded is 4 units OCWhen the price is $3.50 the quantity demanded is 12 units O D.When the price is $3.00 there is a surplus af 4 units uteg apop udThe balance of trade show a deficit of $5000 and the value of imports are $9000what is the value of export
- Who receives the greatest benefit from a trade deficit? O Foreign consumers O Domestic farmers exporting agricultural products O Domestic firms in industries with significant imports O Domestic individuals who own stock Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.The nation of Narnia had a current account deficitof $423 million and a nonreservefinancial account surplus of $360 million in year3695. a.What was the balance of payments of Pecunia in thatyear? What happenedto the country’s net foreign assets? b.If there is a sudden increase in sales of goods andservices to foreigners,what effect do you expect in the Balance of Paymentaccount? c.How would the increase in domestic interest rate inyear 3695 affect thebalance of payment?QUESTION 9 A trade deficit must be equivalent to domestic investment minus domestic savings. O True O False
- For a small, open economy when spending exceeds production then I. This country will run a trade deficit II. This country will be a net lender II. This country will export less than it imports a. Statements II and III are true O b. Statements I and III are true c. Statements I, Il and III are true O d. Statements I and II are trueSuppose the United States decides to subsidize theexport of U.S. agricultural products, but it does notincrease taxes or decrease any other governmentspending to offset this expenditure. Using a threepanel diagram, show what happens to nationalsaving, domestic investment, net capital outflow, theinterest rate, the exchange rate, and the trade balance.Also explain in words how this U.S. policy affects theamount of imports, exports, and net exports.Question 68 The great country of Naboombu has private savings of $700 billion, investment of $800 bilion, tax revenue of $5s00 billion, and ment expenditures of $350 billion. What is the trade balance, does the country have a trade surplus or deficit, and is the net lender or borrower international (respectively)? the trade balance is $50 billion, the country has a trade surplus, and the country is a net borrower internationally O the trade balance is S-150 billion, the country has a trade deficit, and the country is a net lender internationally the trade balance is $50 billion, the country has a trade surplus, and the country is a net lender internationally x the trade balance is $-50 billion, the country has a trade deficit, and the country is a net borrower internationally