Suppose a Country's Net Capital Outflow Does Not Change,but Its

question 102

Multiple Choice

Suppose a country's net capital outflow does not change,but its investment rises by $250 billion.

• A)Its saving must have risen by $250 billion so its net exports have risen.
• B)Its saving must have risen by $250 billion,but its net exports are unchanged.
• C)Its saving must have fallen by $250 billion,so its net exports have fallen.
• D)Its saving must have fallen by $250 billion,but its net exports are unchanged.

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Definitions:

Acquisition-Date

The specific date on which one entity gains control over another, which is crucial for recognizing and measuring the assets acquired, liabilities assumed, and any noncontrolling interest.

Control Premium

An additional amount that a buyer is willing to pay over the current market price to acquire a controlling interest in a company.

Subsidiary

A subsidiary is a company that is controlled by another company, known as the parent company, usually through ownership of more than half of the subsidiary's voting stock.

Acquisition Method

A set of accounting procedures used during a merger or acquisition to consolidate the financial statements of both companies into a single set of financials.