Because the Trade Balance Is the Difference Between GDP and GNE

question 37

Multiple Choice

Because the trade balance is the difference between GDP and GNE, the long-run budget constraint for a nation becomes:

• A) its initial wealth minus depreciation plus investment.
• B) the present value of: the sum of its GDP, minus its GNE, plus its initial external wealth (or minus its initial debt).
• C) the value of real assets plus foreign currency reserves plus new investment.
• D) the present value of domestic production of capital goods plus exports.

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Definitions:

Natural Opening

A passage by which substances or objects can enter or exit an organ or body part naturally.

Artificial Opening

A surgically created opening in the body for the discharge of bodily wastes or other purposes.

Small Incision

A minimal cut or surgical opening in the skin or body tissue, often used in less invasive procedures to reduce healing time and risk of infection.

Internal Ulcer

A sore or lesion forming on the interior lining of an organ, often in the stomach or intestines, causing pain and discomfort.