In an Open Economy Where Capital Is Perfectly Mobile Across

question 5

Multiple Choice

In an open economy where capital is perfectly mobile across countries, the supply of capital is

• A)zero.
• B)perfectly inelastic.
• C)perfectly elastic.
• D)unknown.

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Definitions:

Double-Entry System

A fundamental principle of accounting that requires every financial transaction to be recorded in at least two accounts: one debit and one credit, ensuring the accounting equation is always balanced.

T Account

A visual representation used in accounting to depict the debit and credit sides of an account for easy visualization and analysis.

T Account

A visual representation used in accounting to show the effect of transactions on the balance of accounts, featuring a T-shaped format.

Debit Balance

A financial account balance where debits are greater than credits.