Which of the Following Statements Is Correct for an Open

question 108

Multiple Choice

Which of the following statements is correct for an open economy with a trade surplus?

• A)The trade surplus cannot last for very many years.
• B)The trade surplus must be offset by negative net capital outflow.
• C)The trade surplus implies that the country's national saving is greater than domestic investment.
• D)None of the above is correct.

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