If the United States has a net export deficit, which of the following must be true? (Assume that the capital account is zero and net transfers are zero.)
A) Net foreign investment must be negative as well.
B) Domestic private saving must be less than net foreign investment.
C) Domestic public saving must be less than net foreign investment.
D) The balance on the financial account must equal the balance on the current account.
A
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If the United States is a "net lender" abroad, ________. (Assume that the capital account is zero and net transfers are zero.)
A) the United States must be exporting less than it is importing B) net foreign investment must be negative C) national saving is greater than domestic investment D) net capital flows must be positive
In the (consumption,leisure) space, indifference curves as we have assumed them have the property of presenting the highest levels of satisfaction
A) in the north-east corner. B) in the south-east corner. C) in the north-west corner. D) in the south-west corner.