If the United States is a net borrower from abroad A) net ...

[RRMR]

If the United States is a net borrower from abroad
 
  A) net foreign investment must be positive.
  B) national saving is less than domestic investment.
  C) the United States must be exporting more than it is importing.
  D) net capital flows must be negative.

Question 2

Which of the following equations is true in an open economy?
 
  A) Net exports = -Financial account balance.
  B) National saving = net capital flows.
  C) Net exports = net foreign investment.
  D) Private saving = net foreign investment + domestic investment.

[cadimas]

Answer to Question 1

B

Answer to Question 2

C