An Increase in ________ in an Open Economy of Any

question 31

Multiple Choice

An increase in ________ in an open economy of any size leads to ________.

• A)desired saving;an increase in net capital outflows
• B)desired investment;a decrease in net capital outflows
• C)desired saving;an increase in the trade balance
• D)all of the above
• E)none of the above

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Definitions:

Financial Statements

Financial reports that summarize the effects of events on a business.

Horizontal Analysis

Financial analysis that compares an item in a current statement with the same item in prior statements in terms of the amount and percentage of change.

Base Year

A specific year chosen as a point of comparison for financial or economic data over time.

Current Position Analysis

The evaluation of a company’s ability to pay its current liabilities.