Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN: 9781337091985
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 13, Problem 3CQQ
To determine
Changes in volume of export and import.
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If the value of a nation’s imports exceeds the valueof its exports, which of the following is NOT true?a. Net exports are negative.b. GDP is less than the sum of consumption,investment, and government purchases.c. Domestic investment is greater than nationalsaving.d. The nation is experiencing a net outflow ofcapital.
Argentina has net capital outflow of $2,000, government purchases of $10,000 and consumption of $40,000. Which of the
following is correct?
If its domestic investment is $2,000, its GDP is $52,000.
If its domestic investment is $4,000, its GDP is $56,000.
If its domestic investment is $10,000, its GDP is $58,000.
None of the above are correct.
b.
d.
A
B
D
b
Ifthe value of a nation's imports exceeds the value of its exports,which of the following
is NOT true?
a.Net exports are negative.
b.GDP is less than the sum of consumption, investment, and government purchases.
c.Domestic investment is greater than national saving.
d.The nation is experiencing a net outflow of capita
Chapter 13 Solutions
Brief Principles of Macroeconomics (MindTap Course List)
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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?arrow_forwardDo foreign direct investments have direct impact on gross domestic product?arrow_forwardSuppose a country, Macroland, doesn't trade with other countries. Its GDP is $20 billion. Its government purchases $3 billion worth of goods and services each year, collects $3 billion in taxes, and provides $1 billion in transfer payments to households. Private saving in Macroland is $4 billion. What is investment in Macroland? Question 16 options: $1 billion $3 billion $2 billion $4 billionarrow_forward
- Discuss the role of budget surpluses and trade surpluses in national saving and investmentarrow_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_forwardA country’s investment is 8, its government spends 10 and raises 9 in taxes, and its current account is -2. Find the country’s private saving. Find the country’s public saving. How much net investment does the country receive from the rest of the world?arrow_forward
- Which of the following would be U.S. foreign direct investment? A. A U.S. canning factory opens a plant in Ecuador. B. A Bolivian bank buys U.S. corporate bonds. C. A Polish company opens a shipbuilding plant in the United States. D. A U.S. bank buys Bolivian corporate bonds.arrow_forwardFind out net export of an american economy if import is $45,0000 and export is $75,000?arrow_forwardDiscuss 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.arrow_forward
- 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 - taxesarrow_forwardSince 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, decreasedarrow_forwardThe country of Bahrain does not trade with any other country. Its GDP is $20 billion. Its government collects $4 billion in taxes and pays out $3 billion to households in the form of transfer payments. Consumption equals $15 billion and investment equals $2 billion. What is public saving in Bahrain, and what is the value of the goods and services purchased by the government of Bahrain?arrow_forward
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