Which of the Following Is True

question 84

Multiple Choice

Which of the following is true?

• A) The net flow of goods is associated with a net flow of financial assets in the opposite direction.
• B) The net flow of goods is associated with a net flow of financial assets in the same direction.
• C) If net exports are positive, then there is a net outflow of capital.
• D) The net flow of goods is associated with a net flow of money only.
• E) The trade balance is always equal to investment minus savings.

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Definitions:

Total Utility

The utter satisfaction achieved from the intake of a specific quantity of goods or services.

Risk-loving

A preference for or willingness to take on risk, where individuals may favor investments or decisions with uncertain outcomes over those with certain but potentially lower returns.

Total Utility

Total Utility is the total satisfaction received from consuming a particular quantity of goods or services.

Risk-averse

A description of an investor's preference for lower risk options, valuing stability over potential higher returns.