Question

If the country of Makebelieveia has a trade surplus, what can we say about its saving...

If the country of Makebelieveia has a trade surplus, what can we say about its saving and investment?

Select one:

a. National saving is greater than investment in Makebelievia

b. National saving is equal to investment in Makebelieveia

c. National saving is less than investment in Makebelieveia

d. National saving could be either greater than or less than investment in Makebelieveia

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The answer is a.

a. National saving is greater than investment in Makebelievia

According to the national income identity

if there is a trade surplus the national savings will be greater than the investment, the extra savings will be invested abroad.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Exports, Imports, Net exports. Trade surplus, trade deficit, trade balance. What factors influence a country’s...
1. Exports, Imports, Net exports. Trade surplus, trade deficit, trade balance. What factors influence a country’s exports? Imports? Net exports(NX)? 2. What is a net capital outflow (NCO)? What factors influence net capital outflow? What can you say about NCO and Net exports? What does national saving equal to in open economy? (S=I+NCO) 3. Define Nominal Exchange rate and real exchange rate. What does it mean when a currency appreciates? How do you calculate real exchange rate and what does...
Question 13 1. Suppose that goods in a foreign country seem cheap from a domestic country...
Question 13 1. Suppose that goods in a foreign country seem cheap from a domestic country perspective. This means that, a. the domestic currency is relatively weak and the real exchange rate for the domestic currency is less than 1 b. the domestic currency is relatively weak and the real exchange rate for the domestic currency is greater than 1 c. the domestic currency is relatively strong and the real exchange rate for the domestic currency is less than 1...
What can we say about which type of policy, fiscal or monetary, once enacted affects the...
What can we say about which type of policy, fiscal or monetary, once enacted affects the economy more quickly? Select one: A. The lag between a change in fiscal policy and its effect on output tends to be shorter. B. Changes in monetary policy normally take effect on the economy with little or no lag. C. They both take the same amount of time to take effect. D. It is impossible to tell how long either policy will take to...
According to the model of intertemporal​ trade, a country is most likely to borrow internationally if...
According to the model of intertemporal​ trade, a country is most likely to borrow internationally if A. The returns on investment in this country are high. B. The returns on investment in this country are low. C. This country is producing more than it can consume. D. This country is producing less than it can consume.
2. A country has national saving of $60 million, government expenditures of $30 million, domestic investment...
2. A country has national saving of $60 million, government expenditures of $30 million, domestic investment of $40 million, and net capital outflow of $20 million. What is its supply of loanable funds? Show your work. . 3. In the open-economy macroeconomic model, the supply of loanable funds equals_______________. The demand for loanable funds comes from ________________ + _________________. 4. If there is a surplus of loanable funds, the quantity demanded is ___________(more/less) than the quantity supplied and the interest...
If a country has a “twin surplus” (current account surplus and fiscal surplus), it is likely...
If a country has a “twin surplus” (current account surplus and fiscal surplus), it is likely to have: A) An undervalued currency B) A low level of government investment relative to government consumption (G) C) A low level of private investment relative to private consumption (C) D) All of the above E) None of the above
Suppose a country has not been trading with the rest of the world. If the country...
Suppose a country has not been trading with the rest of the world. If the country decides to allow free trade and the world price for bananas is greater than their domestic price for bananas, (a) will the country export or import bananas? (b) Explain what happens in this situation to consumer surplus, producer surplus, and total surplus as a result of free trade, that is, compare these areas of surplus before trade and after trade. Show using an appropriate...
1. The World Trade Organization (WTO) has asked its members to convert their trade restrictions from...
1. The World Trade Organization (WTO) has asked its members to convert their trade restrictions from quotas to tariffs because a. quotas reduce domestic consumer surplus. b. there is less transparency in how the surplus from a quota is distributed. c. tariffs increase domestic producer surplus. d. tariffs only indirectly affect imports, while quotas directly restrict the quantity. e. none of these. 2. The weekly demand for beach balls in the country of Natadonia is given by: P = 40...
Use the information in the following table to answer questions 1 through 4: Exports of goods...
Use the information in the following table to answer questions 1 through 4: Exports of goods & services: $1000 Imports of goods & services: $1200 Net change in assets owned abroad: $100 Net change in foreign owned assets at home: $360 Unilateral transfers received: $130 Unilateral transfers paid: $200 Investment income paid to foreigners: $380 Investment income received from foreigners: $400 Balance on the capital account: $0 Statistical Discrepancies: $0 1. The balance on the current account is _________. A)...
f there is international trade, then a nation's consumption possibilities are __________ its production possibilities. Select...
f there is international trade, then a nation's consumption possibilities are __________ its production possibilities. Select one: a. less than b. the same as c. greater than d. steeper than
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT