Asked by Ashley Hewett on Jul 01, 2024
If C+I+G>Y, then net exports and net capital outflow are both greater than zero.
Net Exports
The value of a country's total exports minus its total imports, reflecting the trade balance.
Net Capital Outflow
The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners.
- Discriminate between the varied determinants that alter the positioning of demand and supply curves in the markets for loanable funds and foreign-currency exchange.
- Comprehend the state of balance in the open-economy macroeconomic framework and its consequences for local investment, the flow of capital abroad, and the balance of exports and imports.
Learning Objectives
- Discriminate between the varied determinants that alter the positioning of demand and supply curves in the markets for loanable funds and foreign-currency exchange.
- Comprehend the state of balance in the open-economy macroeconomic framework and its consequences for local investment, the flow of capital abroad, and the balance of exports and imports.