Which of the Following Equations Is True in an Open

question 268

Multiple Choice

Which of the following equations is true in an open economy?

• A)Private saving = net foreign investment + domestic investment.
• B)National saving = net capital flows.
• C)Net exports = -Financial account balance.
• D)Net exports = net foreign investment.

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Definitions:

Cooperation

A process where two or more individuals work together to achieve a common goal.

Cultural Context

The environment or situation that surrounds the social behavior and practices of individuals, influencing their beliefs, perceptions, and interactions.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their behaviors, thoughts, and emotions.

Cross-cultural Differences

Variations in values, beliefs, customs, and behaviors that exist among cultures, affecting how people interpret and interact with the world.