Answer to Question 1
Net exports equal net foreign investment. If net exports are negative, the people of the country will sell assets and borrow (negative foreign investment) to pay for the surplus of imports over exports. If net exports are positive, the people of the country will buy assets and lend (positive foreign investment).
Answer to Question 2
Public assistance programs are government transfer programs that provide cash benefits to families with dependent children whose incomes and assets fall below a very low level and the very poor regardless of whether they have children.
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