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Let X = Exports; M = Imports, = Net Exports

Question 98

Multiple Choice

Let X = exports; M = imports, = net exports.Which of the following equations is correct?


A) Xn = Purchases of domestic assets by foreigners + domestic purchases of foreign assets
B) Xn = Purchases of domestic assets by foreigners - domestic purchases of foreign assets
C) Xn = -[( Purchases of domestic assets by foreigners) - (domestic purchases of foreign assets) ]
D) X + Purchases of domestic assets by foreigners = M + domestic purchases of foreign assets

Correct Answer:

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