Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 31 - Part XI - Open-Economy Macroeconomics: Basic Concepts - Problems and Applications - Page 680: 2

Answer

a) U.S. net exports would have this item included, and the net exports would decrease since we are importing the television. b) U.S. net capital outflow would have this item included, and the net capital outflow would increase since the capital is leaving the country.

Work Step by Step

c) U.S. net capital outflow would have this item included, and the net capital outflow would decrease since the capital is entering the country. d) U.S. net exports would have this item included, and the net exports would increase since we are exporting the peaches.
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