If net exports are a negative number for a particular year, then:
1. the value of firms' inventories declined over the course of the year.
2. consumption exceeded the sum of investment and government purchases during the year.
3. the value of goods sold to foreigners exceeded the value of foreign goods purchased during the year.
4. the value of foreign goods purchased exceeded the value of goods sold to foreigners during the year.
If net exports are a negative number for a particular year, then:
1. the value of firms' inventories declined over the course of the year.
2. consumption exceeded the sum of investment and government purchases during the year.
3. the value of goods sold to foreigners exceeded the value of foreign goods purchased during the year.
4. the value of foreign goods purchased exceeded the value of goods sold to foreigners during the year.
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| Exports of goods & services | $1000 |
| Imports of goods & services | $800 |
| The net change in assets owned abroad | $590 |
| The net change in foreign-owned assets at home | $400 |
| Unilateral transfers received | $100 |
| Unilateral transfers paid | $200 |
| Investment income paid to foreigners | $300 |
| Investment income received from foreigners | $400 |
| The balance on the capital account | $0 |
1. The balance on the current account is A) $100. B) $200. C) 0. D) - $100
2. The balance on the financial account is A) -$90. B) -$190. C) $100. D) $200
3. The statistical discrepancy is A) -$5. B) $5. C) $10. D) -$10
4. From the domestic economy's perspective,
A) there is a net international capital inflow equal to $190.
B) there is a net international capital outflow equal to $190.
C) the net international capital flow is zero.
D) its domestic absorption exceeds its GNP by $200.
