If a Country's Net Exports Fall, Then Its Net Capital

question 9

True/False

If a country's net exports fall, then its net capital outflow falls by the same amount.

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Definitions:

Cause-And-Effect Relationship

A principle describing a relationship in which one event (the cause) makes another event happen (the effect), with one being the result of the other.

Scientific Observation

Watching and recording participants’ behavior in a systematic and objective manner—in a natural setting, in a laboratory, or in searches of archival data.

Systematic

Characterized by having a methodical plan or procedure, especially in the context of scientific research or thorough investigation.

Objective Manner

A way of thinking or approaching situations impartially, without allowing personal feelings or prejudice to influence judgment.