In order to correct the balance of payments

Assignment Help Business Economics

Reference no: EM131112558

Suppose many factories that once made goods in the United States moved to Mexico. In order to correct the balance of payments in the United States, net exports (NX) must:

a) increase at the same time, because imports = exports.

b) decrease at the same time, because net capital outflows = net exports. WRONG

c) increase at the same time, because net capital outflows = net exports.

d) decrease at the same time, because imports = exports.

Reference no: EM131112558

Questions Cloud

Use period for the decimal separator : Individuals A and B are the only consumers of good X. Individual A demand for good X is given by: Q = 4 – P and individual B demand for good X is given by: Q = 8 – 2P. The supply for good X is given by MC = 3. Assume good X is a (pure) public good. G..

Describe some of the basic types of managed care regulation : Managed care has been the target of various kinds of state and federal regulation. Describe some of the main reasons for managed care regulation. Describe some of the basic types of managed care regulation.

Discuss the economic concepts of economies of scale : The Health Reform Law (ACA) includes a provision to prohibit physicians having any ownership interest in “specialty” hospitals from receiving Medicare payment for any services they provide in such hospitals. Discuss the economic concepts of “economie..

What is the bank instability problem : What is the bank instability problem? Understand the Bryant and Diamond models of bank runs. I want you to understand the quantitative logic of the problem. Memorizing formulas is not the point here. Be able to understand how my decision about whethe..

In order to correct the balance of payments : Suppose many factories that once made goods in the United States moved to Mexico. In order to correct the balance of payments in the United States, net exports (NX) must:

Government eliminates all environmental regulations : Suppose the government eliminates all environmental regulations and, as a result, the production of goods and services increases, but there is much more pollution. In this scenario, what would happen to real gdp and why

What is the firm fixed cost : A firm’s Total Cost as a function of output Quantity is described by TC(Q) = 2Q3-8Q2 + 12Q + 4. What is the firm’s Fixed Cost? (exactly). At what Quantity is Average Variable Cost = Marginal Cost? (exactly)

Experiences budget deficit : Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 2, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year 4. What is the absolute size of its public debt in ye..

Suppose the federal budget deficit for the year : Suppose the federal budget deficit for the year was $100 billion and the economy was in a recession. If the economy had been at potential GDP, it is estimated that tax revenues would have been $60 billion higher and government spending on transfer pa..

User Account

All Pages