Mankiw s economics circular flow diagram 20

Net capital outflow in Mankiw's macroeconomics:

The difference between domestic savings and domestic investment (s-i).

It is also known as the formula for calculating net foreign investment (net for-eign investment).

y=c+i+g+nx

y-c-g=i+nx

s=i+nx

nx=nco

s=i+nco

s-i=nx

NX: Net export, also known as ** balance, numerically nx = NCO (net outflow of capital)) net outflow of capital = domestic investment abroad - foreign investment in the country "Mankiw version of macroeconomics" is a book published by Chinese University Press in 2011, the author is Xianggao Education Economics Teaching and Research Center.

nco=s－i(r※).This shows that world interest rates have an impact on investment, which naturally has an impact on net capital outflows.

Hey, I couldn't figure out this question before, but I just read the question you asked, and it suddenly became clear, I don't know if you are still wondering now, do you want to discuss it with each other?

The problem is this: Investment and savings are constant, which involves the definition of investment and savings, and the net outflow of capital also belongs to the category of investment, which is regarded as external investment in the country, or a kind of domestic savings through export products (the foreign currency you exchange can be used as foreign purchasing power, which can be regarded as future savings), and you use the formula of three departments in the question, and then put the four departments into it, the level is wrong, si, it can be said that it is all r derivation, r as an equilibrium**. It's the determinant -- SI is just a category, like your weight is determined by your digestibility, not by how much you eat and how much you excrete in general.

Net capital outflow is the difference between the amount of capital outflow abroad and the amount of capital flowing into the country over a certain period of time. That is, the net flow of capital is the value of the flow over a period of time, not the value of the stock. Flow refers to the amount of change over a period of time, and stock refers to the total amount of stock up to a certain point in time.

For example, how much money you earn this month is traffic, and how much money you have now is stock.

Actually, I don't quite understand that you don't understand,

Net capital outflow refers to the country's net investment in foreign countries, the amount is equal to net exports, if the net exports are positive, the country exports more goods and services than foreign countries, there will be a part of foreign currency into the country, these currencies will be invested in the financial market, the purchase of foreign ** bonds, etc. This is net foreign investment. The domestic surplus is a change in inventories and is counted as part of domestic investment.

For example, when domestic demand is strong, the supply of goods exceeds demand, and manufacturers' inventories will decrease, and investment (domestic) will decrease. When demand is insufficient, things cannot be sold, inventories increase, and investment increases. Investments in economics include planned investments and changes in inventories.

So the net outflow of capital is not a surplus item. Like investment, it is closely related to interest rates. cf=s-i only illustrates their numerical relationship, and cannot be said that one is determined by the other.

I have a few of my microeconomics textbooks, but I can't help you copy them...

Mankiw's Glossary of Economics Terms.

1. The ability-to-pay principle holds the idea that a person should be taxed according to what they can afford.

Here is a list of some of the technical terms of microeconomics:

GDP is in equilibrium period, i.e. Keynesian cross

y=ae+i (unplanned, at this time i (unplanned investment is 0).

ae = c + i (planned investment), so d is correct.

Regarding A, it is not possible to ignore the fact that the return on the production of products and services by manufacturers is GDP, but this GDP is not transferred to households as wages, profits, interest, rents, etc., and some of the surplus is used as direct investment by manufacturers in the product market. As a result, consumers' consumption and savings will be smaller than their actual GDP.

The detailed process can be seen in the general expended circular-flow diagram.