If USNet Exports Are $100 Billion and the U

question 37

Multiple Choice

If U.S.net exports are $100 billion and the U.S.purchased $250 billion in foreign assets,then what amount of U.S.assets did foreigners purchase?

• A) $150 billion
• B) -$100 billion
• C) $250 billion
• D) -$150 billion
• E) $50 billion

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one could have received by taking the alternative action.

Forgone Interest

The potential interest earnings lost by choosing one investment over another or by keeping money in a non-interest-bearing account.

Economic Growth

The increase in the amount of goods and services produced by an economy over time, typically measured as the percent rate of increase in real gross domestic product (GDP).

Unemployment Rate

The level of the labor force that consists of individuals who are jobless but actively seeking employment.