In an Open Economy, the Current Account Balance Equals ________

question 6

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
• E)domestic saving

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Definitions:

Robinson-Patman Act

A 1936 United States law aimed at preventing unfair competition and price discrimination by requiring sellers to offer the same price terms to all buyers.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different buyers.

Regulated Monopolies

Companies that are the sole provider of a product or service in a market, but their operations are regulated by government entities to ensure fair practices.

Intellectual Property

A category of property that includes intangible creations of the human intellect, such as inventions, literary and artistic works, designs, symbols, names, and images used in commerce.