Question 1

In which period was most of the change in U.S.net capital outflow due to an increase in investment in the U.S.?
A)1980-1987
B)1991-2000
C)2000-2012
D)None of the above are correct.

Accepted Answer

During the period of 1991-2000, there was a significant increase in foreign investment in the U.S. due to factors such as deregulation, globalization, and the tech boom. This led to a rise in U.S. net capital inflow, which suggests that most of the change in U.S. net capital outflow during this period was due to an increase in investment in the U.S.

Question 2

Between 2000 and 2009,tough economic times lead to
A)investment falling by a larger percentage than saving rose,so net capital outflow rose.
B)investment falling by by a larger percentage than saving,so net capital outflow rose.
C)investement falling by a smaller percentage than saving,so net capital outflow fell.
D)investment and saving both falling by about the same percentage.

Accepted Answer

The answer of Between 2000 and 2009,tough economic times lead...

Question 3

Most of the change from 1991 to 2000 in U.S.net capital outflow as a percent of GDP was due to a(n)
A)decrease in U.S.investment.
B)decrease in U.S.national saving.
C)increase in U.S.investment.
D)increase in U.S.national saving.

Accepted Answer

The answer of Most of the change from 1991 to...

Question 4

If citizens of a country are not saving much,it is better to
A)force citizens to save.
B)reduce investment.
C)have foreigners invest in the domestic economy than no one at all.
D)prevent opportunities for citizens to buy capital assets abroad.

Accepted Answer

Having foreigners invest in the domestic economy would bring in much-needed capital and stimulate economic growth, even if citizens are not saving much. Additionally, forcing citizens to save or preventing them from buying capital assets abroad could lead to resentment and hinder long-term economic progress. Reducing investment would also harm economic growth.

Question 5

If the price levels in the U.S and in Canada are unchanged,but the nominal exchange rate (Canadian dollars per U.S.dollar)rises,then
A)​the U.S.dollar appreciates and so U.S.net exports rise.
B)the U.S.dollar appreciates and so U.S.net exports fall.
C)the U.S.dollar depreciates and so U.S.net exports rise.
D)the U.S.dollar depreciates and so U.S.net exports fall.

Accepted Answer

When the nominal exchange rate rises, the U.S. dollar appreciates, making U.S. goods more expensive for Canadians, leading to a decrease in U.S. net exports.

Question 6

Visitors to a country hosting a world soccer tournament purchase food,souvenirs,and accommodations while attending the tournament.Which of the following should these expenditures raise?
A)​The host country's net exports and its net capital outflow.
B)The host country's net exports but not its net capital outflow.
C)The host country's net capital outflow but nor its net exports.
D)Neither the host country's net exports not its net capital outflow.

Accepted Answer

The answer of Visitors to a country hosting a world...

Question 7

From 2000 to 2012 the U.S.had a trade
A)surplus and a large net capital inflow.
B)surplus and a large net capital outflow.
C)deficit and a large net capital inflow.
D)deficit and a large net capital outflow.

Accepted Answer

From 2000 to 2012, the US had a trade deficit, meaning it was importing more goods and services than it was exporting. At the same time, it also had a large net capital inflow, which means that foreign investors were investing more money in the US economy than US investors were investing abroad. This helped to finance the trade deficit.

Quiz 18: Open Economy Macroeconomics Basic Concepts: The International Flows of Goods and Capital

In which period was most of the change in U.S.net capital outflow due to an increase in investment in the U.S.?

Between 2000 and 2009,tough economic times lead to

Most of the change from 1991 to 2000 in U.S.net capital outflow as a percent of GDP was due to a(n)

If citizens of a country are not saving much,it is better to

If the price levels in the U.S and in Canada are unchanged,but the nominal exchange rate (Canadian dollars per U.S.dollar) rises,then

Visitors to a country hosting a world soccer tournament purchase food,souvenirs,and accommodations while attending the tournament.Which of the following should these expenditures raise?

From 2000 to 2012 the U.S.had a trade