If Canada Is a "Net Lender" Abroad, ________

question 211

Multiple Choice

If Canada is a "net lender" abroad, ________.(Assume that the capital account is zero and net transfers are zero.)

• A)Canada must be exporting less than it is importing
• B)net capital flows must be positive
• C)domestic saving is greater than domestic investment
• D)net foreign investment must be negative
• E)Canada's net exports is lower than it should be

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Definitions:

Absorption Costing

An accounting method that incorporates all direct and indirect manufacturing costs into the cost of a product.

Net Profit

The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenues.

Variable Manufacturing Costs

Expenses that fluctuate with production output levels, including raw materials, direct labor, and utility costs directly involved in the manufacturing process.

Predetermined Fixed Overhead

A budgeted or estimated amount of fixed overhead costs, used to allocate overhead costs to products or services.