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:

Genetically Determined

Attributes or characteristics that are passed from parents to offspring through genes.

IQ

IQ, or intelligence quotient, is a score derived from standardized tests designed to measure human intelligence relative to a statistical norm.

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External elements that can influence development, health, and behavior, including physical, social, and cultural aspects.

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Twins that develop from separate eggs and sperm, making them genetically distinct siblings born at the same time.