If Net Foreign Investment Is Positive,which of the Following Must

question 186

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)None of the above are true when net foreign investment is positive.

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Definitions:

Tender

An offer to perform an obligation or a formal offer, especially in the context of a bid for a project or to fulfill contractual requirements.

Performance

The act of fulfilling the terms of a contract, agreement, or obligation.

Contractual Obligations

are responsibilities or duties that are legally binding and arise from agreements or contracts entered into by parties.

Implied Condition

A condition that is not specifically and explicitly stated but is inferred from the nature and language of the contract.