In Goods Market Equilibrium in an Open Economy

question 13

Multiple Choice

In goods market equilibrium in an open economy,

• A)the desired amount of exports must equal the desired amount of imports.
• B)the desired amount of exports must equal the desired amount of imports less the amount lent abroad.
• C)the desired amount of national saving must equal the desired amount of domestic investment.
• D)the desired amount of national saving must equal the desired amount of domestic investment plus the current account balance.

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Definitions:

Office Building

A structure designed primarily for hosting professional or administrative services and businesses.

Oral Lease

A verbal agreement between a landlord and tenant regarding the rental of property, which may be legally binding but harder to enforce than a written lease.

Warehouseman

An individual or business that operates a facility used for the storage of goods and merchandise.

Chevrolet Car

A brand of vehicle produced by the American automaker General Motors, known for its wide range of passenger cars, trucks, and SUVs.