When a Nation's Net Exports Are Equal to Zero, It

question 108

Multiple Choice

When a nation's net exports are equal to zero, it has a

• A) surplus in trade.
• B) shortage in trade.
• C) balanced trade.
• D) deficit in trade.

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Definitions:

Salvage Value

The projected remaining worth of an asset once it has reached the end of its operational lifespan.

Internal Rate

Refers to the internal rate of return (IRR), which is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Cash Outflows

Financial transactions representing money leaving a business, such as payments for expenses, investments, and loans.