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(Solved): Genosha is a small, open economy. If national saving was equal to R150000 in 2022 and domestic ...
Genosha is a small, open economy. If national saving was equal to in 2022 and domestic investment was equal to R90 000 during the same period, which of the following statements is false? a. Net capital outflow in Genosha was positive in 2022. b. If imports into Genosha amounted to R60 000 during 2022, then Genosha must have exported goods with a value in excess of R60 000 during 2022. c. None of the statements that have been provided are incorrect. d. In 2022, the total market value of all final goods and services produced within Genosha exceeded the amount of money spent by Genoshan residents on domestically produced goods and services.
Expert Answer
To determine which statement is false, let's analyze each option: a. Net capital outflow in Genosha was positive in 2022.Net capital outflow is calculated as the difference between national saving and domestic investment. In this case, the national saving was R150,000, and domestic investment was R90,000. Therefore, net capital outflow would be R150,000 - R90,000 = R60,000. Since this value is positive, statement a is true, not false.