If Net Foreign Investment Is Positive, Which of the Following

question 263

Multiple Choice

If net foreign investment is positive, which of the following must be true? (Assume that the capital account is zero and net transfers are zero.)

• A)Capital outflows are less than capital inflows.
• B)Domestic investment must be less than national saving.
• C)Net exports are negative.
• D)The country will owe more to foreigners in the future.
• E)None of the above is true when net foreign investment is positive.

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Definitions:

Vomer

A thin, flat bone forming the posterior and inferior portion of the nasal septum, which divides the nasal cavity into two.

External Auditory Canal

The passage leading from the outer ear to the eardrum, transmitting sound waves to the eardrum.

Eardrum

A delicate film that divides the outer from the middle ear, moving in reaction to sound waves.

Sound Waves

Sonic oscillations transmitted through the air or other mediums, detectable upon reaching the ears of people or animals.