2a)Which of the following is not a type of financial inflow? Purchases of foreign bonds by...

2a)Which of the following is not a type of financial inflow?

Purchases of foreign bonds by domestic individuals

Sales of domestic stocks or bonds to foreign investors

Borrowing by domestic individuals from foreign banks

Sales of domestic government bonds to foreign investors

If imports exceed exports, then there is a balance of trade _________, resulting in a financial _________.

surplus; outflow

surplus; inflow

deficit; outflow

deficit; inflow

c)If net taxes exceed government purchases, then the government may __________, causing interest rates to __________.

borrow; increase

repay debt; decrease

borrow; decrease

repay debt; increase

d)In the closed nation of Zeeland, government spending exceeds net taxes. We would expect interest rates to __________ and economic growth to _________.

increase; decrease

decrease; increase

decrease; decrease

increase; increase

A closed economy is one that does not have which of the following?

Links to the rest of the world

Leakages and injections

Firms

Financial sector

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

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