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Under the Price-Adjustment Mechanism,a Government's Efforts to Maintain a Current-Account

question 64

True/False

Under the price-adjustment mechanism,a government's efforts to maintain a current-account surplus is self defeating over the long run because a nation's current account automatically moves toward equilibrium.

Understand the significance of cash flow from different activities (operating, investing, financing) for the sustainability of a firm.
Analyze the impact of sales, assets, and liabilities on financial ratios and firm performance.
Calculate changes in net cash provided by different financing and investment activities.
Evaluate the effect of debt financing on firm’s return on equity (ROE) and other profitability ratios.

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