Which of the Following Statements Is Incorrect for an Open

question 123

Multiple Choice

Which of the following statements is incorrect for an open economy?

• A)A country can have a trade deficit,trade surplus,or balanced trade.
• B)A country that has a trade deficit has positive net capital outflow.
• C)Net exports must equal net capital outflow.
• D)National saving equals domestic investment plus net capital outflow.

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Definitions:

Planters

Wealthy landowners in the agricultural sectors who owned large estates and often relied on slave labor before the Civil War.

Merchants

Individuals or businesses involved in the trade of goods, commodities, or services with the aim of earning a profit.

Presidential Reconstruction

A period after the Civil War when Presidents Lincoln and Johnson proposed plans to reunify the nation that were lenient towards the southern states.

Moderate Republicans

Members of the Republican Party in the United States who hold centrist views and often seek compromise with political opponents.