A country has a trade deficit. Which of the following must also be true?
a. net capital outflow is positive and domestic investment is larger than saving
b. net capital outflow is positive and saving is larger than domestic investment
c. net capital outflow is negative and domestic investment is larger than saving
d. net capital outflow is negative and saving is larger than domestic investment
c
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Microeconomic topics do not usually include: a. the impact of large government budget deficits on private investment spending. b. the determinants of the supply of wheat by farmers
c. the determinants of the demand for DVD players by consumers. d. the impact of a change in the price of leather used to manufacture shoes.
A consol is:
A. a bond with a maturity date exceeding 10 years. B. a bond that makes periodic interest payments forever. C. another name for a zero-coupon bond. D. a form of a bond that is issued quite often by the U.S. Treasury.