In the Two-Gap Model,which of the Following Gaps,when Binding,leads to Foreign

question 29

Multiple Choice

In the two-gap model,which of the following gaps,when binding,leads to foreign aid having the largest impact on GNP?

• A)Fiscal gap.
• B)Savings gap.
• C)Foreign exchange gap.
• D)None of the above.

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Definitions:

Common Size Income Statement

A financial statement that presents all items as a percentage of a common base figure, making it easier to analyze changes and compare financial performance over time.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating financial health.

Return On Assets

A financial metric that measures the profitability of a company in relation to its total assets.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales by calculating the percentage of revenue that translates into profits.