Exam 5: Saving and Investment in the Open Economy

If Canada acquired net foreign assets of $50 billion in one year,this would be the equivalent of

If Ricardian equivalence does NOT hold,a budget deficit arising from a tax cut will

The best weather in a decade has given Australia a bumper wheat crop.Australia is a small open economy.Based on this information alone,you would expect that

A large open economy is an economy

A large open economy increases its investment demand.This causes the world real interest rate to ________ and the country's current account balance to ________.

When future labour income falls in a large open economy,it causes the current account to ________ and investment to ________.

If a French company sells 1000 gallons of Perrier to a Canadian company at 25 francs per gallon and uses the money to buy stock in a Spanish cork company,how does this affect the French balance of payments accounts?

Suppose desired consumption $11 billion,desired investment $1 billion,and government purchases of goods and services $4 billion.If the desired foreign lending in this economy is $4 billion,what is the GDP?

When a temporary adverse supply shock hits a small open economy,it causes the current account to ________ and investment to ________.

Suppose output is $35 billion,government purchases are $10 billion,desired consumption is $15 billion,and desired investment is $6 billion.Absorption is equal to

An innovation will enable Haitian sugar cane farmers to harvest the sugar cane twice as efficiently in the future.Haiti is a small open economy.Based on this information alone,you would expect that

Suppose the current account shows debits of $4.7 billion and credits of $5.3 billion.The current account balance is ________,and the capital account balance is ________.

If Canada donates footballs to Japan,how is the transaction recorded on the Canadian balance of payments accounts?

If there is an increase in the future marginal product of capital in a large open economy,it causes the current account to ________ and saving to ________.