1. For this small open economy, output = $25 m, government purchases = $6 m, and net factor payments rw Cd d 5% $12 m $3 m 4% $13 m $4 m 3% $14 m $5 m 2% $15 m $6 m For each rw, calculate national saving, foreign lending, and absorption. Calculate net exports as the difference between output and absorption. What is the relationship between net exports and foreign lending?

provides some hypothetical data on macroeconomicaccountsforthreecountriesrepresented by A, B, and C and measured in billions of currency units. In Table, private household saving is SH, tax revenue is T, government spending is G, and investment spending is I. a. Calculate the trade balance and the net inflow of foreign saving for each country. b. State whether each one has a trade surplus or deficit (or balanced trade). c. State whether each is a net lender or borrower internationally and explain.

Suppose that Americans decide to increase theirsaving.a. If the elasticity of U.S. net capital outflow withrespect to the real interest rate is very high, willthis increase in private saving have a large orsmall effect on U.S. domestic investment?b. If the elasticity of U.S. exports with respect to thereal exchange rate is very low, will this increase inprivate saving have a large or small effect on theU.S. real exchange rate?

In the open circular flow diagram, O a. Domestic Savings - Domestic Investment = Trade Balance Ob. Domestic Savings- Domestic Investment = Foreign Investment Oc. Domestic Savings- Domestic Investment = Foreign Savings Od. Domestic Savings - Domestic Investment = Trade Deficit

According to the open-economy macroeconomic model, import quotas increase which of the following O a. net exports and net capital outflow O b. net exports but not net capital outflow. O c. net capital outflow but not net exports. O d. neither net exports nor net capital outflow.

Which of the following income of a foreign corporation is not subject to the regular U.S. corporate income tax rates?   A. Net long-term capital gains for which no U.S. trade or business exists.   B. Capital gains effectively connected with a U.S. trade or business.   C. Interest income effectively connected with a U.S. trade or business.   D. FIRPTA gains.

8. State whether each of the following events involves a financial flow to the U.S. economy or away from the U.S. economy: a. Export sales to Germany b. Returns being paid on past U.S. financial investments in Brazil c. Foreign aid from the U.S. government to Egypt d. Imported oil from the Russian Federation e. Japanese investors buying U.S. real estate

. Assume that the gross domestic product is $6,000, personal disposal income is $5,100, the government deficit is $200, consumption is $3,800, and the trade deficit is $100. What is the size of: a. Private Saving b. Investment c. Government Spending d. National Savings e. Taxes f. Public savings

tends to discourage firms from making physical capital investments. O Government borrowing O Large trade imbalances O A high exchange rate O High interest rates

1. What explains how the dollars per euro exchange rate will change in the future if the exchange rate is wxpected to rise. 2. What is addressed by the USMCA? 3. Country A has a GDP of 60,000,000 and country B has a per capita of 2,000. If the populations of countries a and b are 40,000 and 20,000 respectively, which country is most developed based on per capita GDP? 4. how can a difference in Gini coefficients for the United States and china be interpreted  5. which of the following trends have followed globalization?