If Rhoda in Hungary Buys Candy from Matt in Maine

question 73

Multiple Choice

If Rhoda in Hungary buys candy from Matt in Maine for $20, and Matt buys foodin his favorite goulash restaurant in Hungary for $20, then the U.S. net exports:

• A) and net capital outflow are both zero.
• B) and net capital outflow both equal $20.
• C) is zero and net capital outflow is $20.
• D) equals $20 and net capital outflow is zero.

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Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional shares.

Directors

Individuals elected by shareholders to manage a corporation's affairs and make key strategic decisions on their behalf.

Stock Dividends

These are dividends paid by a company to its shareholders in the form of additional shares of stock, rather than in cash.

Contributed Capital

Funds raised by a company through the issuance of shares to investors, representing the stockholders' equity apart from retained earnings.