1. Net exports are the difference between exports and imports.They are equal to the difference between what...
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1. Net exports are the difference between exports and imports.They are equal to the difference between what we produce and what we demand for consumption, investment, and government purchases.
2. The net capital outflow is the excess of domestic saving over domestic investment.The trade balance is the amount received for our net exports of goods and services.The national income accounts identity shows that the net capital outflow always equals the trade balance.
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