If a Country Has Positive Net Capital Outflows, Then Its

question 157

Multiple Choice

If a country has positive net capital outflows, then its net exports are

• A)positive, and its saving is larger than its domestic investment.
• B)positive, and its saving is smaller than its domestic investment.
• C)negative, and its saving is larger than its domestic investment.
• D)negative, and its saving is smaller than its domestic investment.

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Definitions:

Double-declining-balance

A method of accelerated depreciation calculating a larger depreciation charge in the first year of an asset's life and progressively smaller charges in subsequent years.

Depreciation Expense

The portion of the cost of a fixed asset that is charged as an expense in a particular accounting period, reflecting the asset's usage and wear and tear.

Betterments

Improvements made to a property or asset that increase its value or productivity.

Plant Asset

Plant asset is a long-term physical asset used in the production process of a company, such as machinery, buildings, and equipment.