A surplus is a result of equilibrium price being below the current price.

Suppose GDP is $10 billion, consumption expenditure is $7 billion, investment is $2 billion, and government expenditure on goods and services is $2 billion. Net exports of goods and services must be

A) $1 billion. B) -$2 billion. C) -$1 billion. D) $2 billion. E) $10 billion.

A nation that has invested more in the rest of the world than other countries have invested in it is called a

A) net lender. B) saver nation. C) creditor nation. D) debtor nation. E) net borrower.