Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 32, Problem 1QCMC
To determine
The impact of increasing real interest rate when others are kept constant.
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Students have asked these similar questions
In a small open economy, if domestic investment equals $70 billion, domestic private saving equals $40 billion, and government saving equals $30 billion, then the trade balance is:
a. -$30 billion
b. $0 billion
c. $30 billion
d. $40 billion
A country's investment can be financed by ________.
a. a government budget surplus
b. national saving and foreign borrowing
c. only saving by households and firms
d. making exports exceed imports
The value of net exports equals the value of
A. national saving – domestic investment.
B. national saving – net capital outflow.
C. public saving.
D. national saving.
Chapter 32 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
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Similar questions
- Where Yis GDP, Cis consumption, /is investment, Gis government spending, and there is no international trade, national saving equals: Multiple Choice Y-C-G C++G. Y-C- Y+C+G.arrow_forward4. Assume no government and no international trade in a country. Show that measured savings is identical to measured investment.arrow_forwardMultiple choice question In a small economy the difference between saving and investment determines: a. real exchange rate.b. net exports and net capital outflow.c. taxes.d. government expenditures.arrow_forward
- provides some hypothetical data on macroeconomicaccountsforthreecountriesrepresented by A, B, and C and measured in billions of currency units. In Table, private household saving is SH, tax revenue is T, government spending is G, and investment spending is I. a. Calculate the trade balance and the net inflow of foreign saving for each country. b. State whether each one has a trade surplus or deficit (or balanced trade). c. State whether each is a net lender or borrower internationally and explain.arrow_forwardInternational financial capital flows into the United States come from: а. income that is not spent in the US. b. savings from the rest of the world. С. the savings of US households. d. the savings of the US government.arrow_forwardIn a closed economy, if Y and T remained the same, but G rose, and C fell but by less than the rise in G, what would happen to public and national saving? a. public and national saving would rise b. public saving would fall and national saving would rise c. public saving would rise and national saving would fall d. public and national saving would fallarrow_forward
- Which of the following are direct foreign investments, and which are not? Event a. A French company merges with an American company; stockholders in the U.S. company exchange their stock for shares in the French firm. b. The same Saudi businessman buys a New York apartment building. c. A Saudi businessman buys $10 million of IBM stock. Is this a direct foreign investment? d. An Italian firm builds a plant in Russia and manages the plant as a contractor to the Russian government. Yes Yes No Noarrow_forwardQUESTION 48 The equilibrium level of income in an open economy is where: B. Consumption + Savings = Imports + Exports. C. Savings + Exports = Investment + Exports. D. Savings + Imports = Investment + Exports.arrow_forwardIf the world real interest rate falls, then a country that is an international lender Select one: A. changes from being a net foreign lender to a net foreign borrower. B. does not change the amount of its lending. C. decreases the amount of its lending. D. increases the amount of its lending. E. none of the abovearrow_forward
- Please no written by hand A period of strong economic growth tends to make a __________________. A. trade surplus larger B. a trade surplus C. trade deficit larger D. both a and b abovearrow_forwardSuppose there is a slowdown in economic activity worldwide and many foreign governments decide to increase government spending to stimulate their economies, what happens to the following? Please indicate whether the following variables rise, fall or remain unchanged. a. World interest rate b. World investment demand c. Domestic investment d. Trade balance of domestic economy e. Real exchange rate of domestic economyarrow_forwardWhich of the following is most restricted to flow across national boundaries? A. People. B. Capital flows. O C. Financial and Portfolio Investment. D. Foreign Direct Investment.arrow_forward
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