If net exports are equal to net foreign investment,
A) the current account balance is equal to the negative of the financial account balance.
B) the balance of payments is zero.
C) net capital inflows are equal to imports minus exports.
D) All of the above are true when net exports are equal to net foreign investment.
D
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One difference between perfect competition and monopolistic competition is that
a. in perfect competition, firms cannot earn a long-run economic profit b. in perfect competition, firms take full advantage of economies of scale in long-run equilibrium; in monopolistic competition, firms do not c. only under perfect competition is there ease of entry and exit d. in monopolistic competition, the firm's demand curve is horizontal; in perfect competition, the firm's demand curve slopes downward e. in perfect competition, there are many firms; under monopolistic competition, there are few firms
There are some well-respected economists that believe we should substitute a national sales tax for the income tax. Other equally well-respected economists do not agree. What accounts for the difference in opinion? a. It might be over their interpretation of fairness. b. It might be over different modeling
c. Both (a) and (b). d. None of the above.