Homework Answers
Net exports = Exports - Imports
Thus if the Value of exports > Value of imports, it implies that net exports are positive.
Capital outflow is nothing but the movement of assets of a country from the home country to other foreign countries.
Net capital outflow = (Capital Outflow - Capital Inflow)
If net exports are positive, it would mean that Capital Outflow >Capital inflow meaning that the net capital outflows will be positive.
Also, when the exports are greater than the imports it implies that people are buying less foreign goods and spending on exporting goods to foreign countries.
Thus, when the value of exports is greater than the value of imports, more and more investments are being made in the economy, less being saved and more is being produced and exported.
Thus, the 3rd Option - Domestic saving exceeds domestic investment is not true.
Thus, the 3rd option is the correct answer.
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First blank: Imports, exports, saving, or taxes? Select all that apply Second Blank: Always, when savings...
First blank: Imports, exports, saving, or
taxes?
Select all that apply
Second Blank: Always, when savings equals planned
investment, when real GDP is equal to aggregate expenditure, or
when exports are equal to imports?
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First blank: Imports, exports, saving, or
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Select all that apply
Second Blank: Always, when savings equals planned
investment, when real GDP is equal to aggregate expenditure, or
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2. Leakages and injections Aa Aa E increases total injections into the Suppose the economy is initially in equilibrium, when an increase in economy. Which of the following will occur as a result of this change? I GDP rises above planned spending. O Firms experience an...
The following table shows data on consumption, investment, exports, imports, and government expenditures for Canada in 2008, as published by Statistics Canada. All figures are in billions of dollars. Fill in the missing cells in the table to calculate GDP using the expenditure approach. Note: Type in the results without rounding off numbers. Personal consumption expenditures (C) Gross private domestic investment (I) Exports (X) Imports (M) Net exports of goods and services Government consumption expenditures and gross investment (G) Gross...
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