According to the national income identity, a. the trade balance is equal to the net capital outflow. b. the trade balance is always greater than the net capital inflow. c. if there is a trade surplus, there is a net capital inflow. d. the trade balance equals the federal government's budget balance. None of these answers is correct. e.

According to the national income identity, a. the trade balance is equal to the net capital outflow. b. the trade balance is always greater than the net capital inflow. c. if there is a trade surplus, there is a net capital inflow. d. the trade balance equals the federal government's budget balance. None of these answers is correct. e.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 39CTQ: Occasionally, a government official will argue that a country should strive for both a trade surplus...

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