If Net Exports Are Positive

question 203

Multiple Choice

If net exports are positive,

• A)net foreign investment is also positive.
• B)capital inflows must be greater than capital outflows.
• C)the currency will appreciate.
• D)net foreign investment is negative.
• E)Both A and B are correct.

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Definitions:

Illusory Correlation

The perception of a relationship between two variables when no such relationship exists or it is much weaker than perceived.

Unrelated Variables

Variables in a study or experiment that are not connected to each other, having no direct influence or correlation.

Perception

The process by which individuals organize and interpret their sensory impressions to give meaning to their environment and experiences.

Regression Toward The Mean

The statistical phenomenon where extreme measurements or data points tend to be closer to the average upon subsequent measurements or in different samples.