Principles of Macroeconomics Chapter 18
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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
