In the Open Economy

question 45

Multiple Choice

In the open economy:

• A)Net foreign investment = Exports
• B)Net foreign investment = Imports
• C)Net foreign investment = Net exports
• D)Net foreign investment = Exports - Imports
• E)both C and D

---

Definitions:

World Bank

An international banking institution dedicated to providing poorer countries' governments with the financial support needed for capital project development.

Federal Reserve

The central banking system of the United States, responsible for regulating the nation's monetary policy and financial institutions.

Export Promotion

Government policies or initiatives aimed at encouraging or supporting local producers to increase their sales abroad, often as a strategy to boost economic growth.

Industrial Production

The total output of a country's manufacturing, mining, and utilities segments.