If a Country Must Make a Net Payment to Foreigners

question 92

Multiple Choice

If a country must make a net payment to foreigners because of a balance-of-payments deficit,the country should

• A)either increase its official reserve assets or borrow anew from foreigners.
• B)either run down its official reserve assets or borrow anew from foreigners.
• C)either run down its official reserve assets or lend more foreigners.
• D)none of the options

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Definitions:

Regression Analysis

Regression Analysis is a statistical technique for estimating the relationships among variables, often used to determine how dependent variables are influenced by one or more independent variables.

Dependent Variable

The variable in an experiment or model whose value depends on the values of one or more independent variables.

Linear Relationship

A type of relationship between two variables where the relationship can be graphically represented by a straight line, indicating a constant rate of change.

Causal Relationship

A connection between two variables where a change in one variable is responsible for a change in another variable.