If Net Foreign Investment Is Positive,which of the Following Must

question 186

Multiple Choice

If net foreign investment is positive,which of the following must be true? (Assume that the capital account is zero and net transfers are zero.)

• A)Capital outflows are less than capital inflows.
• B)Domestic investment must be less than national saving.
• C)Net exports are negative.
• D)None of the above are true when net foreign investment is positive.

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Definitions:

State of Tension

A psychological and physiological condition characterized by feelings of unease or stress that can motivate behavior to relieve this discomfort.

Incongruent

Describes something that is not in harmony or consistent with something else, often leading to cognitive dissonance.

Stanley Milgram

A psychologist known for his research on obedience, demonstrating how people are willing to follow orders from authority figures, even to the extent of harming others.

Obedience

The act of following orders or instructions from an authority figure.