Q17 Explained
let me explain Q17, because all of you guys are disputing...
The table shows international investment for the economy... together showing Equity investment abroad and Foreign liabilities.
As we know
Net Foreign liabilties = Net Foreign debt + Net foreign Equity
A) Cant be A as according to the formula foreign debt decreased from 60 to 50.
B) Correct 250/300 > 90/150
C) wrong as it is shown equity investment is growing faster (250/90 > 300/150)
D) wrong debt and equity are totally unrelated, and only meet on the grounds of equalling net foreign liabilities. A change in equity does not influence a change in debt!!!!