If domestic residents of other countries purchase $600 billion of U.S. assets and U.S residents purchase $500 billion of foreign assets, then U.S. net capital outflow is
a. $100 billion and the U.S. has a trade surplus.
b. $100 billion and the U.S has a trade deficit.
c. -$100 billion and the U.S. has a trade surplus.
d. -$100 billion and the U.S. has a trade deficit.
d
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Refer to Table 10-3. The table above shows Lee's marginal utility per dollar from consuming ice cream cones and cans of Lime Fizz Soda. The price of an ice cream cone is $2 and the price of Lime Fizz Soda is $1
Use this information to select the correct statement. A) If Lee has an unlimited budget he will maximize his utility by buying only Lime Fizz Soda. B) We cannot determine how many ice cream cones and cans of Lime Fizz Soda Lee will consume without knowing what his income is. C) To maximize his utility Lee should consume 1 ice cream cone and 5 cans of Lime Fizz Soda. D) We cannot determine how many ice cream cones and cans of Lime Fizz Soda will maximize Lee's utility because we are given only the marginal utility per dollar values. We also need to know the marginal utility for each quantity.
Monetary policy can have substantial effects on the economy even when nominal interest rates are very low
A) since real rates are what affects borrowing and spending decisions. B) by improving borrower and bank balance sheets. C) by reducing transactions costs. D) only when the policy is substantial.