Suppose Cavland's Exports Equal $400 Billion and Its Imports Equal

question 120

Multiple Choice

Suppose Cavland's exports equal $400 billion and its imports equal $500 billion. JForeigners purchased $200 billion worth of assets in Cavland. What is Cavland's
Jbalance on its capital account?

• A) $100 billion
• B) -$100 billion
• C) $300 billion
• D) -$300 billion

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Definitions:

Pairs of Socks

Multiple sets of soft foot garments, each set consisting of two items, typically worn for warmth, comfort, or hygiene reasons.

Opportunity Cost

The expense incurred by not choosing the second-best option available during decision-making.

United States

A country in North America consisting of 50 states and a federal district, known for its large economy and diverse population.

Rebuilding

The process of restoring or reconstructing infrastructure, homes, or communities after damage or destruction.