Which of the Following Statements Is True

question 64

Multiple Choice

Which of the following statements is true?

• A) A positive balance on capital account necessarily implies a positive balance on current account.
• B) A negative balance on capital account necessarily implies a negative balance on current account.
• C) A positive balance on capital account necessarily implies growing U.S. foreign investments.
• D) A negative balance on capital account necessarily implies a positive balance on current account.

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Definitions:

Resources Efficiency

The optimal use of resources to achieve the desired outcome with minimal waste, maximizing the effectiveness of resource utilization.

Technology Improvement

Enhancements or upgrades in technology that increase efficiency, productivity, or quality of outputs.

Production Possibility Frontier

Graphical representation illustrating the maximal output options for two goods, determined by specific resources and other influential factors.

Capital Goods

Items used in the production of other goods or services, such as machinery and equipment.