If a Nation's Yearly Trade Balance Exactly Offsets the Interest

question 40

Multiple Choice

If a nation's yearly trade balance exactly offsets the interest due on its net external wealth, what is the effect on its net external wealth?

• A) It remains the same.
• B) It explodes.
• C) It declines at first and then rises dramatically.
• D) It rises gradually because of interest compounding.

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Definitions:

Agreeableness

A personality trait characterized by warmth, kindness, and a cooperative attitude.

Networking Behaviours

Actions taken by individuals to establish and maintain relationships with others for the purpose of professional or personal advancement.

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The ability to effectively understand others and use such knowledge to influence them to act in ways that enhance one's personal or organizational objectives.

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