Principles of Macroeconomics Chapter 18

Which of the following statements is true about a country with a trade surplus

Net exports are positive and net capital outflow must be negative

When the French company Airbus sells a new plane to Southwest Airlines in the U.S

U.S net exports fall and the U.S trade deficit rises

Which of the following by itself increases U.S. net capital outflow

a german company buys a shopping mall in boston

A trade deficit exists when imports exceed exports. In this instance, the net capital outflow is negative

true

For an economy as a whole, net capital outflow must always equal net export

true

The net exports of any country are the difference between the value of its exports and the value of its imports.

true