Between 1981 and 1988, Which of the Following Caused Most

question 165

Multiple Choice

Between 1981 and 1988, which of the following caused most of the change in Canadian net capital outflow as a percent of GDP?

• A)decline in public saving
• B)decline in private saving
• C)increase in public saving
• D)increase in private saving

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Definitions:

Expected Rate

Typically refers to the rate of return anticipated on an investment or project, based on projections or historical data.

Nominal Sharpe Ratio

A measure of risk-adjusted performance that indicates the average return minus the risk-free return divided by the standard deviation of return on an investment.

Nominal Return

The amount of profit or loss on an investment before adjusting for inflation.

Real Return

The rate of return on an investment after adjusting for inflation, representing the actual purchasing power gained or lost.