A Country's Current Account Balance and Its Net Capital Inflows

question 101

Multiple Choice

A country's current account balance and its net capital inflows

• A) sum to zero.
• B) determine the size of the pool of saving available for capital investment.
• C) must always equal the sum of the four components of planned aggregate expenditure.
• D) must equal domestic investment in new capital goods.
• E) are identical in open and closed economies.

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Definitions:

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Safety Deposit Box

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