If Net Exports Are Negative

question 46

Multiple Choice

If net exports are negative,

• A)net foreign investment is also negative.
• B)capital inflows must be less than capital outflows.
• C)net foreign investment must be greater than public saving.
• D)net foreign investment is positive.
• E)Both A and B are correct.

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Definitions:

Salvage Value

The expected sale value of an asset upon reaching the end of its serviceable life.

Units-Of-Activity Method

Depreciation method in which useful life is expressed in terms of the total units of production or use expected from an asset.

Depreciation Expense

The allocation of a tangible asset's cost over its useful life to account for declines in value over time.

Salvage Value

The anticipated recovery value of an asset when it no longer has usable life.