Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 4, Problem 3E
To determine
The meaning of the situation when the net export is negative.
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- Ceteris paribus, how does a recession in the United States affect U.S. net exports?arrow_forwardWhich of the following best describes the relationship between net exports and national savings? a. Net Exports = National Savings – Investment b. Net Exports = Private Savings - Investment c. Net Exports = Investment - National Savings d. There is no relationship between net exports and national savings.arrow_forwardare savings and spending on imports included in aggregate expenditure?arrow_forward
- Since the early 2000s, the U.S. net exports of services has _____________ and U.S. net exports of goods has _____________. a. increased, decreased b. decreased, increased c. increased, increased d. decreased, decreasedarrow_forwardIf the United States. Purchases a car from China the. Does that raise the net imports or net exports? And if so, from which country is affected and howarrow_forwardIf exports drop by $10 billion and imports rise by $7 billion, then what's the net export change? (Enter as If the answer is negative, then as the minus .arrow_forward
- Is a family a household? Is a household a family? Which sector (Households, Businesses, or International) spends the most? Which sector spends the least? Which sector, because of its volatility, has an importance greater than is warranted by its size? What does it mean if net exports are negative? People sometimes argue that imports should be limited by government policy. Suppose a government quota on the quantity of sugar to be imported to the United States occurs. What is likely to happen to the price of sugar in the United States and in the rest of the world? List the four sectors of the economy along with the type of spending associated with each sector. Order the types of spending in terms of magnitude, and give an example of each kind of spending. Using the interconnection between sectors of the economy, explain the effects of imposing an increase in taxes on the household sector.arrow_forwardWhat does this graph show and what is the relationship between real exchange rate and net exports?arrow_forwardWhat is the relative importance of Net Export (NX) (Net Export = spending on exports (X) - imports (M)) in aggreagte demand and some factors that affect it?arrow_forward
- How would the following transactions affectU.S. exports, imports, and net exports?a. An American art professor spends the summertouring museums in Europe.b. Students in Paris flock to see the latest movie fromHollywood.c. Your uncle buys a new Volvo.d. The student bookstore at Oxford University inEngland sells a copy of this textbook.e. A Canadian citizen shops at a store in northernVermont to avoid Canadian sales taxesarrow_forwardIn an economy the National savings isarrow_forwardDiscuss which of the following fall into the categories of consumption, investment, government expenditure and net exports from the Y = C + I + G + NX (X – M) identity, and whether the impact is to increase or decrease GDP.Thomas buys a new housearrow_forward
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