According to the Open-Economy Macroeconomic Model, If the U

question 159

True/False

According to the open-economy macroeconomic model, if the U.S. government budget deficit decreases, then both U.S. domestic investment and net capital outflow increase.

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Definitions:

Factoring Accounts Receivable

A financial transaction where a business sells its accounts receivable to a third party at a discount to immediately raise cash.

Commercial Paper

An unsecured, short-term debt instrument used by corporations to finance their immediate needs.

Accounts Payable

Obligations or debts that a company owes to its suppliers or creditors for goods or services received that have not yet been paid for.

Shortage Cost

Costs incurred when the demand for a product exceeds the supply, often involving lost sales or the urgency of obtaining additional resources at a higher cost.