Business
Business, 13.11.2019 04:31, anamatiascamaja

An open economy interacts with the rest of the world through its involvement in world markets for goods and services and world financial markets. although it can often result in an imbalance in these markets, the following identity must remain true: = net exports net capital outflow in other words, if a transaction directly afffects the left side of this equation, then it must also affect the right side. the following problem will you understand why this identity must hold suppose you own a toy store in the united states, where there is high demand for the playnation 3, a video game console. because of this, you spend $15,000 to increase your inventory of the gaming system, which is manufactured by zony, a japanese company, in japan. determine the effects of this transaction on exports, imports, and net exports the u. s. economy, and enter your results in the following table. if the direction of change is "no change," enter "0" in the magnitude of change column. change should always be positive, regardless of the direction of change. hint: the magnitude magnitude of change direction of change (dollars) exports imports net exports in u. s. net exports is matched by because of the identity equation that relates to net exports, the in u. s. net capital outflow. which of the following is an example of how the united states might be affected in this scenario? check all that apply. zony exchanges the $15,000 for yen at the local bank, which then uses the dollars to purchase u. s. bonds. zony purchases $15,000 worth of u. s. bonds. zony purchases $15,000 worth of stock in a u. s. company.

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