EC Fin2

123. Domestic saving must equal domestic investment in a. both closed and open economies. b. closed, but not open economies. c. open, but not closed economies. d. neither closed nor open economies.

B DIF: 2 REF: 31-1 NAT: Analytic LOC: International trade and finance TOP: Investment | Saving MSC: Definitional

122. If a country has Y > C + I + G, then it has a. positive net capital outflow and positive net exports. b. positive net capital outflow and negative net exports. c. negative net capital outflow and positive net exports. d. negative net capital outflow and negative net exports.

A DIF: 2 REF: 31-1 NAT: Analytic LOC: International trade and finance TOP: Net capital outflow | Net exports MSC: Applicative

124. All saving in the U.S. economy shows up as a. investment in the U.S. economy. b. U.S. net capital outflow. c. either investment in the U.S. economy or U.S. net capital outflow. d. None of the above is correct.

C DIF: 1 REF: 31-1 NAT: Analytic LOC: International trade and finance TOP: Saving MSC: Definitional

118. An open economy's GDP is always given by a. Y = C + I + G . b. Y = C + I + G + T . c. Y = C + I + G + S . d. Y = C + I + G + NX .

D DIF: 1 REF: 31-1 NAT: Analytic LOC: International trade and finance TOP: National accounts MSC: Definitional

120. Which of the following equations is correct? a. Y = C + I + G + NCO b. NX = NCO c. NCO = S- I d. All of the above are correct.

D DIF: 1 REF: 31-1 NAT: Analytic LOC: International trade and finance TOP: National accounts MSC: Definitional

117. Suppose that purchases of Irish assets by foreigners exceed Irish purchase of foreign assets. Ireland has a. positive net capital outflow and a trade surplus. b. positive net capital outflow and a trade deficit. c. negative net capital outflow and a trade surplus. d. negative net capital outflow and a trade deficit.

D DIF: 2 REF: 31-1 NAT: Analytic LOC: International trade and finance TOP: Net capital outflow | Trade balance MSC: Interpretive

119. Which of the following equations is correct? a. S = I + C b. S = I - NX c. S = I + NCO d. S = NX- NCO .

C DIF: 1 REF: 31-1 NAT: Analytic LOC: International trade and finance TOP: National saving MSC: Definitional

121. Which of the following equations is always correct in an open economy? a. I = Y- C b. I = S c. I = S - NCO d. I = S + NX

C DIF: 2 REF: 31-1 NAT: Analytic LOC: International trade and finance TOP: National accounts MSC: Definitional