When Foreigners Are Making More "Investments" in a Country Than

question 6

Multiple Choice

When foreigners are making more "investments" in a country than the residents of the country are making abroad, which of the following is most likely to occur?

• A) Inflation.
• B) Rapid growth of the money supply.
• C) A balance of trade deficit.
• D) A negative net investment rate.

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Definitions:

Market Share

The ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself.

Wants and Needs

Essential drivers of consumer behavior; needs are basic requirements for survival, while wants are desires for specific satisfiers of these needs.

Cost-effective

A term describing a process, action, or method that achieves its intended outcomes without excessive expenditure, providing the best possible return on investment.

Allergic Reaction

An immune system response to a foreign substance that is typically not harmful to the body, such as pollen, pet dander, or certain foods.