A Trade Deficit Is Balanced with a

question 130

Multiple Choice

A trade deficit is balanced with a

• A) trade surplus.
• B) capital account surplus.
• C) capital account deficit.
• D) Each of these answers is correct.

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Definitions:

Pre-Tax Cost

The cost of an investment or loan without taking taxes into account.

Debt-Equity Ratio

A metric reflecting how company assets are proportionally financed by shareholders' equity and debt.

Cost of Equity

The return that investors expect for investing in a company's equity, considering the risk of the investment.

After-Tax Cash Savings

The increase in cash flow that results after all applicable taxes have been deducted from the gross income.