What Does the Identity "Net Capital Outflow = Net Exports

question 155

Multiple Choice

What does the identity "net capital outflow = net exports" imply?

• A) The supply of dollars equals the demand for dollars in the foreign-currency market.
• B) National saving equals domestic investment.
• C) The volume of exports equals the volume of imports.
• D) Canadian investment abroad is equal to foreign investment in Canada.

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Definitions:

Civic Nationalism

A form of nationalism that is defined by shared citizenship, legal rights, and allegiance to a country, rather than by ethnicity or culture.

Ninth Amendment

A provision of the U.S. Constitution that states the enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.

Constitution

A framework of critical axioms or accepted procedures by which a state or an alternative organization is directed.

Retained by the People

Retained by the People refers to the concept in American constitutional law that the people hold rights beyond those explicitly enumerated in the Constitution, as reflected in the Ninth Amendment.