Which of the Following Statements Is True

question 187

Multiple Choice

Which of the following statements is true?

• A) If private saving is greater than private investment, then the private sector has a surplus.
• B) If private investment is greater than private saving, then the private sector has a deficit.
• C) If private investment is greater than private saving, then either the government or net export sector must have a surplus.
• D) All of the above answers are correct.

Recognize the principles of risk and return in international portfolios, including diversification benefits and exchange rate impacts.

Understand the definition and types of international investment funds.

Learn how political risks and exchange rate policies can impact international investments.

Understand the theory underlying the interplay between interest rates and exchange rates, including purchasing power parity and interest rate parity.

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Definitions:

Induce A Good Mood

Inducing a good mood involves engaging in activities or behaviors that elevate one's emotional state, generating feelings of happiness and contentment.

Foot-In-The-Door Tactic

Multiple-request technique to gain compliance, in which the focal request is preceded by a smaller request that is bound to be accepted.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including about its potential customers, competitors, and other market dynamics.

Lifelong Openness Hypothesis

The theory suggesting that maintaining an openness to new experiences can contribute to personal growth and well-being throughout an individual's life.