eco 121

• NCO = NX

• yes

• no

• When a foreigner purchases a good
  from the U.S.

• U.S. exports and NX decrease

• no

• yes

• not sure

• When NCO > 0

• “capital outflow”

• “capital inflow”

• • U.S. exports and NX increase

• Y = C + I + G + NX

• when " C " is company

• When " I " is Investment

• When " G " is Goods

1. Which of the following is a type of foreign exchange market?

• 1. Forward market

• 1. Spot market

• 1. Both a and b are correct

• 1. Both a and b are incorrect

1. The structure of the balance of payment accounts includes the _______.

• 1. Capital account

• 1. Current account

• 1. Both a and b are correct

• 1. Both a and b are incorrect

 

If Japan exports more than it imports,

• Japan's net exports are negative.

• Japan is running a trade deficit.

• Japan's net capital outflow must be positive.

• Japan's net capital outflow must be negative.

 

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

• Net exports are negative.

• Net capital outflow must be positive.

• Exports exceed imports.

• Net exports are positive.

• none of these answers

An economy that interacts with other economies is known as

• an export economy.

• a friendly economy.

• an open economy.

• a balanced trade economy.

• an import economy.

Which of the following products would likely be the least accurate if used to calculate purchasing power parity?

• Diamonds

• Gold

• Cars

• Wheat

• Dental services