6. If domestic saving is less than domestic investment, then net exp.docx

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6. If domestic saving is less than domestic investment, then net exports are ______ and net capital outflows are _____. A. positive; positiveB. positive; negativeC. negative; negativeD. negative; positive 7. In a small, open economy, if domestic saving exceeds domestic investment, then the extra saving will be used to 8. A trade deficit can be financed in all the following ways except by
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Unformatted text preview: foreigners D. borrowing from domestic lenders 9. In a small, open economy, if the world real interest rate is above the rate at which national saving equals domestic investment, then there will be a trade ______ and ______ net capital outflow. A. surplus; negative B. deficit; positive C. surplus; positive D. deficit; negative 10. In a small, open economy, starting from a position of balanced trade, if the government increases domestic purchases, this produces a tendency toward a trade _____ and _____ net capital outflow. A. deficit; negative B. surplus; positive C. deficit; positive D. surplus; negative...
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