What Does the Identity "Net Capital Outflow = Net Exports

question 155

Multiple Choice

What does the identity "net capital outflow = net exports" imply?

• A) The supply of dollars equals the demand for dollars in the foreign-currency market.
• B) National saving equals domestic investment.
• C) The volume of exports equals the volume of imports.
• D) Canadian investment abroad is equal to foreign investment in Canada.

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