In Which Situation Must Domestic Saving Equal Investment

question 117

Multiple Choice

In which situation must domestic saving equal investment?

• A) when NX is negative
• B) when NX is zero
• C) when NCO is negative
• D) when imports are zero

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Definitions:

Bankruptcy

The legal process through which individuals or businesses unable to pay their debts can seek relief from some or all of their liabilities.

Equity

The ownership interest of shareholders in a corporation, represented by their shares.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the corporation's profits.

Equity

Refers to the ownership interest held by shareholders in a corporation, measured by the portion of the company's capital that they own outright without any debts.