If Canada Has Negative Net Exports, Which of the Following

question 220

Multiple Choice

If Canada has negative net exports, which of the following must be true? (Assume that the capital account is zero and net transfers are zero.)

• A)The balance on the financial account must equal the balance on the current account.
• B)Net foreign investment must be negative as well.
• C)Domestic private saving must be less than net foreign investment.
• D)Domestic public saving must be less than net foreign investment.
• E)Domestic public savings must be greater than domestic private savings.

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