Net capital spending is equal to:
A. ending net fixed assets minus beginning net fixed assets.
B. zero if the decrease in the net fixed assets is equal to the depreciation expense.
C. the net changes in total assets over a stated period of time.
D. the equivalent to the cash flow from assets minus the operating cash flow minus the change in net working capital.
E. the net change in the current accounts.
Net capital spending is equal to:
A. ending net fixed assets minus beginning net fixed assets.
B. zero if the decrease in the net fixed assets is equal to the depreciation expense.
C. the net changes in total assets over a stated period of time.
D. the equivalent to the cash flow from assets minus the operating cash flow minus the change in net working capital.
E. the net change in the current accounts.
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| Exports of goods & services | $1000 |
| Imports of goods & services | $800 |
| The net change in assets owned abroad | $590 |
| The net change in foreign-owned assets at home | $400 |
| Unilateral transfers received | $100 |
| Unilateral transfers paid | $200 |
| Investment income paid to foreigners | $300 |
| Investment income received from foreigners | $400 |
| The balance on the capital account | $0 |
1. The balance on the current account is A) $100. B) $200. C) 0. D) - $100
2. The balance on the financial account is A) -$90. B) -$190. C) $100. D) $200
3. The statistical discrepancy is A) -$5. B) $5. C) $10. D) -$10
4. From the domestic economy's perspective,
A) there is a net international capital inflow equal to $190.
B) there is a net international capital outflow equal to $190.
C) the net international capital flow is zero.
D) its domestic absorption exceeds its GNP by $200.
