If the United States is a "net borrower" from abroad
A) net foreign investment must be positive.
B) national saving is less than domestic investment.
C) the United States must be exporting more than it is importing.
D) net capital flows must be negative.
B
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The reserve ratio is 10 percent and all loan proceeds are deposited in transactions accounts. A bond dealer has $100 million in deposits, $8 million in vault cash, and $7 million in deposits at the Fed
The Fed sells $1 million in securities to the bond dealer. As a result, of this transaction alone A) the money supply falls by $1 million and total reserves rise by $1 million. B) the money supply falls by $1 million and total reserves fall by $1 million. C) the money supply rises by $1 million, total reserves fall by $900,000. D) the money supply rises by $1 million, but reserves do not change.
Countries engage in trade because
a. the exchange is mutually beneficial. b. governments force industries to exchange. c. international law dictates that exchange must take place. d. All of these.