Other Things the Same,if a Country Has a Trade Deficit

question 158

Multiple Choice

Other things the same,if a country has a trade deficit and saving rises,

• A)net capital outflow rises,so the trade deficit increases.
• B)net capital outflow rises,so the trade deficit decreases.
• C)net capital outflow falls,so the trade deficit increases.
• D)net capital outflow falls,so the trade deficit decreases.

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Definitions:

Excess Depreciation

The depreciation claimed on an asset that exceeds the amount that reflects its actual decrease in value, often due to accelerated depreciation methods.

Consolidation Purposes

The objective of amalgamating financial statements from various entities within a single corporate group to present a unified financial position and results of operations.

Eliminate Unrecognized

A process in accounting, often related to consolidation, where unrealized profits, losses, or transactions within or among entities are removed from financial statements.

Intra-entity Gross Profit

The profit recognized on transactions conducted within the same entity, which may need to be eliminated in consolidated reporting.