In an Open Economy,the Current Account Balance Equals ________

question 3

Multiple Choice

In an open economy,the current account balance equals ________.(Assume that the capital account is zero and net transfers are zero.)

• A)net foreign investment + domestic investment
• B)net capital outflows
• C)the financial account balance + net income on investments
• D)net foreign investment

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Definitions:

Manipulation Check

A measure used to determine whether the manipulation of the independent variable has had its intended effect on a subject.

Double-Blind Procedures

An experimental procedure wherein both the subjects of the experiment and the researchers do not know which subjects are receiving the active treatment versus a placebo, to prevent bias.

Demand Characteristics

Features of an experiment that inadvertently lead participants to guess its purpose, potentially affecting their behavior.

Peer Review

The process of judging the scientific merit of research through review by other scientists with the expertise to evaluate the research.