A country imports $20 billion worth of goods and services and exports $15 billion worth of goods and services. What is its net capital outflow?
a. $5 billion, so its residents' purchases of foreign assests exceed foreigners' purchases of domestic assets
b. $5 billion, so foreigners' purchases of domestic assets exceed its resident's purchases of foreign assets
c. -$5 billion, so its residents' purchases of foreign assests exceed foreigners' purchases of domestic assets
d. -$5 billion, so foreigners' purchases of domestic assets exceed its residents' purchases of foreign assets
d
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The present value of an asset and the rate of interest
a. are not related b. are related inversely c. cannot change in opposite directions d. are equivalent e. are directly related
The cost of production plus producer surplus is the price a seller is paid
a. True b. False Indicate whether the statement is true or false