According to the Saving and Investment Equation,if Net Foreign Investment

question 255

Multiple Choice

According to the saving and investment equation,if net foreign investment falls by $35 million

• A)national saving in excess of domestic investment will decrease by $35 million.
• B)national savings will rise by $35 million.
• C)domestic investment will fall by $35 million.
• D)national saving in excess of domestic investment will rise by $35 million.

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Definitions:

Average Total Cost Curve

A graphical representation that shows how the average total cost of production changes as the quantity of output is increased.

Total Product Curve

This curve graphically represents the total output produced by a firm in relation to varying levels of a single input, assuming all other inputs are held constant.

Total Utility

Denotes the total satisfaction a consumer derives from consuming a specific quantity of goods or services.

Marginal Utility

The additional satisfaction or benefit gained from consuming one more unit of a good or service.