If Net Foreign Investment in the United States Is Negative,how

question 82

Multiple Choice

If net foreign investment in the United States is negative,how must national saving and domestic investment be related?

• A)Domestic investment and national saving must also be negative.
• B)Domestic investment must be greater than national saving.
• C)Domestic investment must be less than national saving.
• D)Domestic investment can be greater than or less than national saving.

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Definitions:

Balance Sheet

A snapshot report of a company's assets, liabilities, and shareholder equity at a specific time.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a specific period.

Total Asset Turnover

A financial ratio that measures a company's ability to generate sales from its assets by comparing sales with average total assets.

Sales On Account

Transactions where goods are sold or services are provided with payment to be received at a later date.