If Walmart Buys $50 Million Worth of Consumer Goods from China

question 136

True/False

If Walmart buys $50 million worth of consumer goods from China and sells them in the U.S., and China uses the $50 million to purchase U.S. bonds, U.S. net exports and U.S. net capital outflow both fall.

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Definitions:

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality, playing a key role in decision making and maintaining one's sense of self.

Reality Principle

A psychoanalytic concept that represents the ability of the mind to assess the external world and act upon it accordingly, often in contrast with the pleasure principle.

Unconscious

Refers to the part of the mind that is inaccessible to the conscious mind but affects thoughts and behaviors.

Collective Unconscious

Concept in psychology, proposed by Carl Jung, referring to the part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.