Foreign-produced goods and services that are purchased domestically are called

• imports.

• exports

• net imports

• net exports

When Claudia, a U.S. citizen, purchases a handbag made in France, the purchase is

• both a U.S and French import

• a U.S export and a French import

• a U.S import and a French export

• neither an export nor an import for either country

A country's trade balance

• must be zero.

• must be greater than zero.

• is greater than zero only if exports are greater than imports.

• is greater than zero only if imports are greater than exports.

The value of Peru's exports minus the value of Peru's imports is called

• Peru's foreign portfolio investment.

• Peru's foreign direct investment.

• Peru's net exports. NX=EXPORT- IMPORT

• Peru's net imports.

If Germany purchased more goods and services abroad than it sold abroad last year, then it had

• positive net exports which is a trade surplus.

• positive net exports which is a trade deficit.

• negative net exports which is a trade surplus.

• negative net exports which is a trade deficit

You buy a new car built in Sweden. Other things the same, your purchase by itself

• raises both Vietnam’s exports and Vietnam’s net exports

• raises Vietnam’s import and lowers Vietnam net exports.

• raises both Vietnam imports and Vietnam net exports.

• raises Vietnam’s imports and Vietnam’s U.S. net exports

Net capital outflow (NCO)  is defined as the purchase of

• foreign assets by domestic residents minus the purchase of domestic assets by foreign residents.

• foreign assets by domestic residents minus the purchase of foreign goods and services by domestic residents

• domestic assets by foreign residents minus the purchase of domestic goods and services by foreign residents

• domestic assets by foreign residents minus the purchase of foreign assets by domestic residents

Net capital outflow measures

• foreign assets held by domestic residents minus domestic assets held by foreign residents.

• the imbalance between the amount of foreign assets bought by domestic residents and the amount of domestic assets bought by foreigners.

• the imbalance between the amount of foreign assets bought by domestic residents and the amount of domestic goods and services sold to foreigners.

• None of the above is correct.

Net capital outflow equals

• the purchase of foreign assets by domestic residents.

• the purchase of domestic assets by foreign residents.

• the purchase of domestic assets by foreign residents - the purchase of foreign assets by domestic residents

• the purchase of foreign assets by domestic residents - the purchase of domestic assets by foreign residents

An open economy's GDP is always given by

• Y = C + I + G.

• Y = C + I + G + T.

• Y = C + I + G + S.

• Y = C + I + G + NX.