If National Saving Decreases

question 31

Multiple Choice

If national saving decreases

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

Identify efficient allocations of goods in exchange economies using the Edgeworth box and contract curve.

Understand the role and impact of substitutes and complements in consumer consumption patterns.

Apply the concept of marginal substitution rates in understanding consumer preferences and optimal allocations.

Recognize the effects of market interdependencies on general and partial equilibriums.

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Definitions:

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