If Net Exports Are Negative

question 46

Multiple Choice

If net exports are negative,

• A)net foreign investment is also negative.
• B)capital inflows must be less than capital outflows.
• C)net foreign investment must be greater than public saving.
• D)net foreign investment is positive.
• E)Both A and B are correct.

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Definitions:

Strike Price

The specified price at which the buyer of an option can buy (for a call option) or sell (for a put option) the underlying asset.

Net Profit

The amount of income that remains after all operating expenses, taxes, and costs have been subtracted from total revenue.

Call Contracts

Financial derivatives that give the holder the right, but not the obligation, to buy an asset at a set price within a specific time period.

Underlying Stock

The security on which a derivative instrument, such as an option or a warrant, is based.