If C+I+G>Y, Then Net Exports and Net Capital Outflow Are

question 26

True/False

If C+I+G>Y, then net exports and net capital outflow are both less than zero.

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Definitions:

Conversion Premium

The additional cost over the current market value of a convertible security that an investor pays to have the option to convert it into a set number of shares.

Conversion Price

The predetermined price per share at which a convertible bond or preferred stock can be converted into common stock.

Current Price

The market value of a stock, bond, or commodity at which it can be bought or sold at a particular time.

Conversion Ratio

The number of shares an investor gets for converting a convertible security into common stock.