A Nation Has a Positive Net Capital Outflow

question 157

Multiple Choice

A nation has a positive net capital outflow.Which of the following is correct?

• A)Purchases of foreign assets by domestic residents exceed purchases of domestic assets by foreigners
• B)It has positive net exports.
• C)Its savings exceeds its domestic investment.
• D)All of the above are correct.

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Definitions:

Life-cycle Pattern

A theory suggesting that individuals plan their consumption and savings behavior over their lifetime, taking into account expected income changes and retirement needs.

Income Variation

Fluctuations in an individual's or household's income due to factors like employment changes, investment returns, or economic conditions.

Annual Income

The total amount of income received over a one year period from all sources including wages, salaries, benefits, dividends, and interest.

Total Utility

The total satisfaction or benefit a consumer receives from consuming a particular quantity of goods and services.