If Canada Has Negative Net Exports, Which of the Following

question 220

Multiple Choice

If Canada has negative net exports, which of the following must be true? (Assume that the capital account is zero and net transfers are zero.)

• A)The balance on the financial account must equal the balance on the current account.
• B)Net foreign investment must be negative as well.
• C)Domestic private saving must be less than net foreign investment.
• D)Domestic public saving must be less than net foreign investment.
• E)Domestic public savings must be greater than domestic private savings.

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Definitions:

Assertiveness

A characteristic of being self-assured and confident without being aggressive.

Fluctuate

To change or vary irregularly in number, amount, or degree; often used to describe variables that do not remain constant.

Adult Personality

The range of enduring personal characteristics and traits that define an adult individual's enduring patterns of thinking, feeling, and behaving.

Change

The process of becoming different, which can occur in physical, social, psychological, or environmental realms.