If a Theory Is Testable…

question 5

Multiple Choice

If a theory is testable…

• A) It is true
• B) There is some way to determine whether it is true or false
• C) It is more likely to be true than other theories
• D) It cannot predict anything

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Definitions:

U.S. Dollar

The official currency of the United States, widely used as a benchmark in international financial transactions.

Domestic Investment

Refers to the total capital investment in an economy by its residents and businesses, excluding investments in foreign assets.

Net Capital Outflow

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners in an economy.

Government Budget Deficit

The financial situation where the government's expenditures exceed its revenues over a specified period, typically a fiscal year.