Podcast
Questions and Answers
An "open" economy is one in which:
An "open" economy is one in which:
A country's exports may be written as equal to:
A country's exports may be written as equal to:
Net exports equal GDP minus domestic spending on:
Net exports equal GDP minus domestic spending on:
Study Notes
Summary of Economic Concepts
- An "open" economy engages in trade with other countries.
- Net exports equal GDP minus domestic spending on all goods and services.
- If domestic spending exceeds output, imports are positive.
- Net exports equal net saving.
- If net capital outflow is positive, exports are likely positive.
- Net capital outflow equals national saving minus domestic investment.
- A small open economy is one in which the exchange rate and domestic interest rates respond to changes in the world interest rate and the world financial markets. Factors of production like capital or labor are able to flow freely between countries.
- Economic factors are influenced by global factors such as war, and government spending.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz explores key economic concepts related to open economies, net exports, and capital outflow. Understand the impact of global trade on domestic economies and the relationship between national saving and investment. Protect your economic literacy by testing your knowledge on these pivotal ideas.
