Multiple Choice
If national saving increases,________.(Assume that the capital account is zero and net transfers are zero.)
A) the sum of domestic investment and net exports must decrease
B) the sum of domestic investment and net foreign investment must increase
C) the sum of domestic investment and net foreign investment must decrease
D) net foreign investment must decrease to cover the gain
Correct Answer:

Verified
Correct Answer:
Verified
Q227: According to the saving and investment equation,if
Q228: Explain why economies with financial account surpluses
Q229: A Canadian oil company hires geological survey
Q230: Figure 18-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1236/.jpg" alt="Figure 18-1
Q231: Which of the following would cause the
Q233: Net foreign investment is equal to<br>A)capital inflows
Q234: The possibility that a government budget deficit
Q235: What impact might a decrease in the
Q236: Assuming no change in the nominal exchange
Q237: An increase in the government budget deficit