If Net Exports Are Negative, Then

question 135

Multiple Choice

If net exports are negative, then

• A)net capital outflow is positive, so foreign assets bought by Americans are greater than American assets bought by foreigners.
• B)net capital outflow is positive, so American assets bought by foreigners are greater than foreign assets bought by Americans.
• C)net capital outflow is negative, so foreign assets bought by Americans are greater than American assets bought by foreigners.
• D)net capital outflow is negative, so American assets bought by foreigners are greater than foreign assets bought by Americans.

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Definitions:

Translated

In financial contexts, this usually refers to converting amounts from one currency to another using a specific exchange rate.

Current Rate Method

A method of foreign currency translation where all current and non-current assets and liabilities are translated at the current exchange rate.

U.S. Dollars

The official currency of the United States, widely used as a standard for international financial transactions.

Cost of Goods Sold

The costs directly linked to the manufacturing of products a company sells, which include both materials and labor.