If net foreign investment is positive, which of the following ...

[Bob-Dole]

If net foreign investment is positive, which of the following must be true? (Assume that the capital account is zero and net transfers are zero.)
 
  A) Net exports are negative.
  B) Capital outflows are less than capital inflows.
  C) Domestic investment must be less than national saving.
  D) None of the above are true when net foreign investment is positive.

Question 2

According to the saving and investment equation, if net foreign investment falls by 35 million
 
  A) national saving in excess of domestic investment will rise by 35 million.
  B) national savings will rise by 35 million.
  C) domestic investment will fall by 35 million.
  D) national saving in excess of domestic investment will decrease by 35 million.

[GCabra]

Answer to Question 1

C

Answer to Question 2

D

[Bob-Dole]

Correct answers!

[GCabra]

Great! Please up vote