Which One of the Following Economic Variables Would Be the Best

question 3

Multiple Choice

Which one of the following economic variables would be the best to use to help investors determine a financially sound country?

• A) the ratio of family debt to income
• B) the ratio of a country's external debt to its GDP
• C) a country's rate of HIV contamination
• D) a country's foreign direct investment by other countries

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Definitions:

Rawhide Tanning

The process of treating raw hides and skins with chemical solutions to produce leather.

CCA Rate

The Capital Cost Allowance rate refers to the annual depreciation rate that is applicable for tax purposes on a depreciable asset, allowing businesses to write off a portion of the asset's cost over its useful life.

After-Tax Discount Rate

The rate used to discount future cash flows to their present value after accounting for taxes.