A Decrease in Canadian Net Foreign Direct Investment Would Occur

question 231

Multiple Choice

A decrease in Canadian net foreign direct investment would occur if

• A)Canadian citizens have decreased the value of foreign stocks and bonds they own.
• B)Canadian citizens have decreased their building or purchasing of facilities in foreign countries.
• C)net foreign investment decreases.
• D)net capital flows increase.
• E)will reduce the balance on the capital account.

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Definitions:

Monthly Fixed

Costs that do not change with the level of production or sales in a month, such as rent, salaries, and insurance.

Lubrication Cost

The expenses associated with lubricating machinery or equipment to ensure smooth and efficient operation.

Variable Cost

Costs that change in proportion to the level of production or business activity, such as materials and labor.

Income Statement

A fiscal report displaying a business's incoming funds, outgoings, and profit for a designated time frame.