Which of the Following Statements Is True About a Country

question 7

Multiple Choice

Which of the following statements is true about a country with a trade deficit?

• A) Net exports are negative.
• B) Net capital outflow must be positive.
• C) Exports exceed imports.
• D) Net exports are positive.
• E) none of these answers

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Definitions:

Lake Wobegon Effect

The tendency for people to overestimate their abilities or achievements relative to others, named after the fictional town where all the children are above average.

Above Average

Performance or measures that exceed the normal or expected benchmark.

Group Claims

Refers to assertions or demands made by a group of individuals, often in a legal or policy context, indicating a collective interest or right.

Hindsight Bias

The tendency to perceive events as having been predictable after they have already occurred.