For Any Country, Net Exports Are Always Equal to Net

question 19

True/False

For any country, net exports are always equal to net capital outflow because every international transaction involves an exchange of an equal value of some combination of goods and assets.

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Definitions:

Constant Ratio

A strategy or measure that remains unchanged over a period of time, often used in financial contexts to describe stable investment proportions or fixed financial ratios.

Retained Earnings

Represents the portion of net income that is not distributed to shareholders but retained by the company for reinvestment in its operations or to pay debt.

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders as dividends, typically expressed as a percentage.

Profit Margin

A financial metric that measures the extent to which a company or a business activity makes money, expressed as a percentage of revenues.