In an Open Economy,the Current Account Balance Equals ________

question 3

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

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Definitions:

Align

To adjust or arrange something in a straight line or in correct relative positions.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests and usually voting rights in the company.

Stock Options

are financial derivatives that give the holder the right, but not the obligation, to buy or sell stocks at a predetermined price within a specific period.

Unethical Behavior

Actions or practices that violate moral or professional standards of conduct.