Which of the Following Statements Is Incorrect for an Open

question 123

Multiple Choice

Which of the following statements is incorrect for an open economy?

• A)A country can have a trade deficit,trade surplus,or balanced trade.
• B)A country that has a trade deficit has positive net capital outflow.
• C)Net exports must equal net capital outflow.
• D)National saving equals domestic investment plus net capital outflow.

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Definitions:

Lower Court Cases

Legal disputes and decisions that are handled in courts with limited jurisdiction, such as municipal or district courts.

Percent

A unit of measure used to express a proportion or fraction of 100.

Federal Courts

Courts established by the federal government of a country that have jurisdiction over matters involving federal laws.

Civil Cases

Legal disputes between individuals or organizations that often involve issues of private law, such as contracts, property, and family relations.