If a Country Has Saving of $2 Trillion and Investment

question 20

Multiple Choice

If a country has saving of $2 trillion and investment of $1.5 trillion,then it has

• A)a trade surplus and its net capital outflow = $.5 trillion.
• B)a trade surplus and its net capital outflow = -$.5 trillion.
• C)a trade deficit and its net capital outflow = $.5 trillion.
• D)a trade deficit and its net capital outflow = -$.5 trillion.

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Definitions:

Radical Departure

A significant and often sudden change from previous methods, practices, or products, marking a break from traditional ways of doing things.

Four-Step Problem-Solving

A systematic approach to addressing issues that involves identifying the problem, developing potential solutions, implementing a solution, and evaluating the outcome.

Groupthink

A psychological phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Inborn Trait

A characteristic or quality of an individual that is present from birth, often influenced by genetic factors.