When Exports Exceed Imports, All of the Following Are True

question 70

Multiple Choice

When exports exceed imports, all of the following are true except:

• A) net capital outflows are positive.
• B) net exports are positive.
• C) domestic investment exceeds domestic saving.
• D) domestic output exceeds domestic spending.

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Definitions:

Straight-line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its expected useful life.

Double Declining-balance

An accelerated depreciation method that counts the expense twice as fast as the straight-line method, reducing the value of an asset more quickly.

Net Income

The amount of profit left after all expenses, taxes, and costs are subtracted from a company’s total revenue; synonymous with net profit.

Tax Purposes

Describes the reasoning or intention behind financial decisions or calculations made to comply with tax laws and regulations.