Question
Consider a small open economy with GDP of $800 billion, consumption of $400 billion, government expenditures of $100 billion, and investment of $200 billion. Which
Consider a small open economy with GDP of $800 billion, consumption of $400 billion, government expenditures of $100 billion, and investment of $200 billion. Which one best describes this economy?
a. net exports are greater than zero, saving is greater than investment, and net capital outflow is greater than zero
b. net exports are greater than zero, saving is less than investment, and net capital outflow is greater than zero
c. net exports are greater than zero, saving is greater than investment, and net capital outflow is less than zero
d. net exports are less than zero, saving is greater than investment, and net capital outflow is greater than zero
e. net exports are less than zero, saving is less than investment, and net capital outflow is less than zero
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