Which of the Following Statements Is Correct for an Open

question 108

Multiple Choice

Which of the following statements is correct for an open economy with a trade surplus?

• A)The trade surplus cannot last for very many years.
• B)The trade surplus must be offset by negative net capital outflow.
• C)The trade surplus implies that the country's national saving is greater than domestic investment.
• D)None of the above is correct.

---

Definitions:

Biologically Adaptive

Traits or behaviors that increase the survival or reproductive success of organisms within their environmental context.

Predicts

Refers to the act of forecasting future events or outcomes based on patterns or data analysis.

Classical Conditioning

An educational method where a connection is made between an external stimulus and an innate stimulus, resulting in a conditioned reaction.

Onset

The beginning or start, particularly of something unwelcome or unpleasant.