Which of the Following Is True

question 124

Multiple Choice

Which of the following is true?

• A)The developed nations are growing rapidly and the less-developed nations are stagnating.
• B)Most of the countries that have achieved the highest growth rates in the world during the last quarter of a century were classified as LDCs in 1980.
• C)It is an oversimplification to divide the world into the growing,developed nations and the stagnating,less-developed nations.
• D)Both b and c are true.
• E)All of the above are true.

---

Definitions:

Financial Account Deficit

A situation where a country's financial outflows to other countries exceed the inflows from them.

Current Account Surplus

A situation where a country's earnings from exports exceeds its spending on imports, leading to net positive income from foreign transactions.

Balance of Trade

The net difference in value between a country's exports and imports over a certain period.

Balance on Capital Account

A national accounting measure that records all transactions for foreign investments and loans going in and out of a country.