1. What is the market of loanable funds?
Adequate response: It is the place where everyone goes to deposit their money into their savings.
Very good response: The market of loanable funds is where people go to deposit money into their savings and where borrowers go to get their loans.
2.Why does net capital outflow equal net exports?
Adequate response: This is because the purchases and sale of capital assets abroad is the same as the exports and imports of goods and services.
Very good response: Net capital outflow is equal to net exports because the imbalance between capital assets in other countries is the same as the imports of goods and services to the U.S. from other countries.
3.What is a trade policy?
Adequate response: Is a government policy that influences what is imported and exported from a country.
Very good response: A trade policy is a government policy that affects the quantity of goods and services that a country imports and exports.
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