Think of the circular flow and the expenditure model ( savings is the total amount of savings by domestic agents, investment is the total amount of financing domestic firms receive). Total savings = domestic savings + FI & Total investment home investments + DI. Please Choose the correct answers:!!! If NX < 0 then: A.) FA < 0 to balance the Balance of Payments B .) The balance of payments cannot regain balance. C) Savings > Investment domestically (home), to pay for imports through the financial account D.) Savings < Investment domestically (home) since foreign savings in the domestic economy (DI) balances BOP (D> FI).

Think of the circular flow and the expenditure model ( savings is the total amount of savings by domestic agents, investment is the total amount of financing domestic firms receive). Total savings = domestic savings + FI & Total investment home investments + DI. Please Choose the correct answers:!!! If NX < 0 then: A.) FA < 0 to balance the Balance of Payments B .) The balance of payments cannot regain balance. C) Savings > Investment domestically (home), to pay for imports through the financial account D.) Savings < Investment domestically (home) since foreign savings in the domestic economy (DI) balances BOP (D> FI).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

If U.S. residents purchase $600 billion worth of foreign assets and foreigner residents purchase $300 billion worth of U.S. assets, OA. U.S. net capital outflow is $300 billion; capital is flowing into the U.S. OB. U.S. net capital outflow is -$300 billion; capital is flowing into the U.S. OC. U.S. net capital outflow is -$300 billion; capital is flowing out of the U.S. OD. U.S. net capital outflow is $300 billion; capital is flowing out of the U.S. Reset Selection
Give correct answer with short explanation
Consider the following open economy. Real GDP Consumption Government Expenditures Investment Exports Taxes Transfers 1,000 800 115 280 22 195 79 What is net foreign investment (NFI)? Round to two decimal places, enter the negative sign if appropriate, and do not enter a currency symbol. If your answer is $1.125, enter 1.13.
A. Canada produces natural resources (coal, natural gas, and others), the demand for which has increased rapidly as China and other emerging economies expand. i. Explain how growth in the demand for Canada's natural resources would affect the demand for Canadian dollars in the foreign exchange market. Explain how the supply of Canadian dollars would change. ii. iii. Explain how the value of the Canadian dollar would change. iv. Illustrate your answer with a graphical analysis. 1
Pick a good that is bought and sold internationally...the only condition is that you can find the price in the United States and the foreign price online (e.g., the iPhone sold in Mexico versus the United States). Next, find the foreign price, domestic price, and the exchange rate before "testing" the degree to which purchasing power parity holds. Elaborate upon why PPP might better hold for certain goods for certain countries, but not for others? In other words, if we observe major departures from PPP, what might be the cause?
Suppose a country's net exports are $400 billion, income receipts on investments are $780 billion, and income payments on investments are $1,200 billion. Suppose unilateral transfers are $250 billion. If all international transactions are recorded accurately in the balance of payments, what is the value of the financial account? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a -$20 billion b d -$270 billion $270 billion Need information on the flows of funds for real and financial investments to answer. Your answer
If Investment=f(r*) a. Explain with pictures how it affects the balance of Supply/Saving and Investment Demand if it increases investment demand abroad