Which statement is true?A.When net capital outflows are positive, net exports are negative.B.In a small open economy, if exports equal $8 billion and imports equal $9 billion, than there is trade deficit and NCO is positive.C.For the LM curve, both taxes and government spending are fixed.D.In the IS-LM model, interest rate links the market for goods and services and the market for real money balances.

In a small open economy, if exports equal $12 billion and imports equal $18 billion, then there is a trade____and _____ net capital outflow.A.deficit; positive.B.deficit; negative.C.surplus; positive.D.surplus; negative.

Suppose a country's exports exceed imports, which of the following statements are true?This is a multi answer question. You can select one or more options as the answer.A.Net Capital Outflow is negativeB.Domestic Output exceed Domestic SpendingC.Domestic Saving exceed Domestic InvestmentD.Net Export is negative

In a small open economy with a floating exchange rate, if the government imposes a tariff on foreign goods, then in the new short-run equilibrium, ______________.a.imports will decrease while exports remain constant, leading to a rise in net exports.b.imports will decrease while exports will increase, leading to a rise in net exports.c.imports and exports will decrease by the same amount; thus, net exports remain unchanged.d.both imports and exports will remain unchanged; thus, net exports remain unchanged

2. A "negative" balance of trade, or trade deficit, occurs when a country's imports are------------------------------ then its exports. More Less Equal None of the above

State whether the following statement is true or false.A 10% fall in net imports would always have the same impact on the GDP as a 10% fall in government spending.TrueFalse