If Net Exports Are Equal to Net Foreign Investment,which of the Following

question 240

Multiple Choice

If net exports are equal to net foreign investment,which of the following is not true?

• A)The balance of payments is zero.
• B)The current account balance is equal to the negative of the financial account balance.
• C)Net capital inflows are equal to imports minus exports.
• D)The balance on the financial account is zero.

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Definitions:

Economic Efficiency

Economic efficiency is a state where resources are allocated in such a way that maximizes the production of goods and services at the lowest cost, thereby optimizing societal welfare.

Demand Conditions

The various factors that influence the quantity of a product or service that consumers are willing and able to purchase.

Cost Conditions

Relate to the factors that influence the costs of production for goods and services, including material, labor, and overhead costs.

Cost Conditions

The factors that influence the costs associated with producing goods or services, including raw material prices, labor costs, and operational efficiencies.