If national saving decreases,
A) the sum of domestic investment and foreign investment must increase.
B) the sum of domestic investment and net exports must increase.
C) the sum of domestic investment and foreign investment must decrease.
D) foreign investment must increase to cover the loss.
C
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The interest rate will fall when the
A. quantity of money demanded exceeds the quantity of money supplied. B. quantity of money supplied exceeds the quantity of money demanded. C. supply of money decreases. D. demand for money increases.
Charles wants to buy a pound of salted tuna. He is willing to pay up to $3 per pound for his favorite brand. The local store sells this brand of tuna for $2 . If Charles purchases a pound of tuna, then his consumer surplus is _____
a. $1 b. $1.50 c. $0.50 d. $2
For Country A, the world price of textiles exceeds the domestic equilibrium price of textiles. As a result, international trade allows sellers of textiles in Country A to experience greater producer surplus than they otherwise would experience
a. True b. False Indicate whether the statement is true or false
An “optimally imperfect” decision is one that
A. is vaguely right instead of precisely wrong. B. recognizes that the decision could always be better if given more time. C. recognizes that the cost of additional information probably exceeds the potential gain from making a better decision. D. recognizes that any decision is imperfect because humans have limited intellectual capacities.