Domestic saving must equal domestic investment in a. both closed and open economies. b. closed, but not open economies. c. open, but not closed economies. d. neither closed nor open economies.

A. Net capital outflow

a. is always greater than net exports.

b. is always less than net exports.

c. is always equal to net exports.

d. could be greater than, less than, or equal to net exports.

B. Purchasing-power parity describes the forces that determine a. prices in the short run. b. prices in the long run. c. exchange rates in the short run. d. exchange rates in the long run.

C. Net exports of a country are the value of a. goods and services imported minus the value of goods and services exported. b. goods and services exported minus the value of goods and services imported. c. goods exported minus the value of goods imported. d. goods imported minus the value of goods exported