Mike, a US citizen, buys $1,000 worth of cheese from France. His action alone ()
A. increases US imports by $1,000 and increases US net exports by $1,000.
B. increases US imports by $1,000 and decreases US net exports by $1,000.
C. increases US exports by $1,000 and increases US net exports by $1,000.
D. increases US exports by $1,000 and decreases US net exports by $1,000.
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Suppose that more Chinese decide to vacation in the US and that the Chinese purchase more US Treasury bonds. Ignoring how payments are made for these purchases, ()
A. the first action by itself raises US net exports, the second action by itself raises US net capital outflow.
B. the first action by itself raises US net exports, the second action by itself lowers US net capital outflow.
C. the first action by itself lowers US net exports, the second action by itself raises US net capital outflow.
D. the first action by itself lowers US net exports, the second action by itself lowers US net capital outflow.
Paul, a US citizen, builds a telescope factory in Israel. His expenditures ()
A. increase US and Israeli net capital outflow.
B. increase US net capital outflow, but decrease Israeli net capital outflow.
C. decrease US net capital outflow, but increase Israeli net capital outflow.
D. None of the above is correct.
If the US real exchange rate appreciates, US exports ()
A. increase and US imports decrease.
B. decrease and US imports increase.
C. and US imports both increase.
D. and US imports both decrease.
An increase in the US government budget deficit shifts the ()
A. demand for loanable funds right and decreases investment spending.
B. supply of loanable funds right and increases investment spending.
C. supply of loanable funds left and decreases investment spending.
D. None of the above is correct.