Suppose the U.S. Congress is successful in enacting tariffs large ...

[Beheh]

Suppose the U.S. Congress is successful in enacting tariffs large enough to eliminate the current account deficit. What would happen to the level of domestic investment?
 
  A) It would not change.
  B) It would fall to a level equal to national saving.
  C) It would rise and exceed national saving.
  D) It would rise to a level equal to net foreign investment.

Question 2

If national saving decreases
 
  A) the sum of domestic investment and foreign investment must increase.
  B) the sum of domestic investment and foreign investment must decrease.
  C) foreign investment must increase to cover the loss.
  D) the sum of domestic investment and net exports must increase.

[SVictor]

Answer to Question 1

B

Answer to Question 2

B

[Beheh]

Thanks for the timely response, appreciate it

[Joy Chen]

Gracias!