If national saving decreases, A) the sum of domestic ...

[colton]

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.

Question 2

What would be the consequence for the Lorenz curve is rich people use their resources more efficiently than poor people?
 
  What will be an ideal response?

[Sweetkitty24130]

Answer to Question 1

C

Answer to Question 2

The Lorenz curve may understate the actual amount of inequality if richer households are able to use income more efficiently than lower income households or vice versa. Alternatively it may be that measured inequality may be the result of more or less efficient use of household incomes.

[colton]

TYSM

[yeungji]

Excellent