The diagram to the right represents desired saving and desired investment in a domestic economy. Net factor payments are equal to $5 billion and the statistical discrepancy is equal to 0. At a world real interest rate of 4%, what is the level of net exports 'NX? $ billion. (F World real interest rate (%) 20- 18- 16- E 0- 35.0 80.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 Desired national saving and investment (billions)

The diagram to the right represents desired saving and desired investment in a domestic economy. Net factor payments are equal to $5 billion and the statistical discrepancy is equal to 0. At a world real interest rate of 4%, what is the level of net exports 'NX? $ billion. (F World real interest rate (%) 20- 18- 16- E 0- 35.0 80.0 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 Desired national saving and investment (billions)

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 45P: Table 23.7 provides some hypothetical data on macroeconomic accounts for three countries represented...

See similar textbooks

Similar questions

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?
Based on the Balance of Payments account presented in this table, the net exports are: a. 2300 b. -2600 c. -300 d. -200
ProblemYou are given the following information about an open economyGross private domestic investment:40Government purchases of goods and services:30Gross national product(GNP):200Current account balance:-20Taxes:60Government transfer payment to the domestic private sector:25Interest payments from the government to the domestic privatesector:15Factor in come received from the rest of the world:7Factor payments made to the rest of the world:9Calculate the following:a)Consumptionb)NetExportsc)GDPd)Net factor payments from abroade)Private savings (f) Government savings (g) National savings
Beriefly explain why intrest rate and net export are inversely related in equation NX=500-0.10Y-500R.
If a Canadian corporation sells a product to the United States and uses the proceeds to purchase a product manufactured in United States, then Canadian net exports _____, and net capital outflows _____.
2. 10 Bananas (thousand tons) 88 69 9. 18 7. LL 2. 4. 10 8. 5. Bananas (thousand tons) Submit All O Completed 20 out of 20 Question 20 of 20 > The production possibilities frontier (PPF) for Honduras and Brazil, representing hypothetical levels of production, are shown in the graphs. Assume that, without trade, each country is initially producing and consuming at point A on its PPF curve. Suppose these countries decide to trade. Each country will specialize in the production of the good for which it has a comparative advantage. Brazil Honduras 6. 7. 7. Post-trade consumption 5. 5. post-trade consumption 3. A. 3. 1. Activate Windows 4. 5o to6Sett7gs t8 acti9ate 19indow 2. Steel (thousand tons) 3. 1 2 3. Steel (thousand tons) 9. 8. 4. LAPTOP LOGIN ICH USERNAME: student PASSWORD: Broward1 TravelMate B PrtSc Pause F11 F12 Scr Lk Break bysks NumLk L 7. 6. 6. %3D
QUESTION 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 ud
Would each of the following transactions be includedin U.S. net exports or in U.S. net capital outflow?Indicate whether it would represent an increase or adecrease in that variable.a. An American buys a Sony TV.b. An American buys a share of Sony stock.c. The Sony pension fund buys a bond from theU.S. Treasury.d. A worker at a Sony plant in Japan buys someGeorgia peaches from an American farmer.
Consider the following open economy SImodel set upY = 18000C = 300 + 0.8(Y − 2500)I = 3500 − 400(r)r = r∗ = 5G = 3000T = 2500NX = 5000 − 30(e)(a) Compute National Savings.(b) Compute Net Exports, NX and exchangerate, e.(d) Compute the impact on e, if both Gincrease by 500.
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 No
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.