Answered: Would each of the following…

Would each of the following transactions be included in net exports or net capital outflow? Be sure to say whether it would represent an increase or decrease in that variable.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 2PA

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Question

a) Would each of the following transactions be included in net exports or net capital outflow? Be sure to say whether it would represent an increase or decrease in that variable.

i) An Indian buys a Samsung TV

ii) An Indian buys a share of sony stock

iii) The sony pension fund buys a bond from the Indian government

iv) A worker at a Toyota plant in Japan buys some Nagpur oranges from an Indian farmer

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