A Country Has a Trade Deficit

question 120

Multiple Choice

A country has a trade deficit.Which of the following must also be true?

• A)net capital outflow is positive and domestic investment is larger than saving
• B)net capital outflow is positive and saving is larger than domestic investment
• C)net capital outflow is negative and domestic investment is larger than saving
• D)net capital outflow is negative and saving is larger than domestic investment

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Definitions:

Technological Advances

Innovations and improvements in technology that enhance productivity, efficiency, and quality of life.

Microfinance

Financial services provided to individuals or small businesses in underserved markets or developing countries, often including small loans.

Imperfect Information

The absence of full knowledge concerning product characteristics, available prices, and so on.

Peer Lending

A financial transaction in which individuals lend money to each other directly, often facilitated by an online platform, bypassing traditional financial intermediaries.