Asked by Lauren Byrd-Moreno on Jul 21, 2024
Verified
A country recently had saving of 300 billion euros and domestic investment of 200 billion euros. What was the value of this country's net exports? Explain how you found your answer.
Net Exports
The difference between the value of a country's exports and the value of its imports.
Saving
The act of putting money aside, typically in a secure place, for future use or investment.
Domestic Investment
The total capital expenditure on physical assets (like buildings, machinery, and equipment) within a country's borders to produce goods and services.
- Comprehend the principle of trade balances, encompassing both deficits and surpluses.
- Assess trade balances, net exports, and net capital outflows utilizing the provided figures.
Verified Answer
JJ
Josiah JordanJul 26, 2024
Final Answer :
saving = domestic investment + net capital outflow
300 billion euro = 200 billion euro + net capital outflow
net capital outflow = 100 billion euro
Since net exports = net capital outflow, net exports were also 100 billion euro
300 billion euro = 200 billion euro + net capital outflow
net capital outflow = 100 billion euro
Since net exports = net capital outflow, net exports were also 100 billion euro
Learning Objectives
- Comprehend the principle of trade balances, encompassing both deficits and surpluses.
- Assess trade balances, net exports, and net capital outflows utilizing the provided figures.