If National Saving Increases,________

question 232

Multiple Choice

If national saving increases,________.(Assume that the capital account is zero and net transfers are zero.)

• A)the sum of domestic investment and net exports must decrease
• 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 decrease to cover the gain

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Definitions:

Contribution Margin Ratio

The percentage of each sales dollar that remains after deducting variable costs, used to cover fixed costs and provide profit.

ROI

Return on Investment (ROI) measures the efficiency of an investment, calculated as net profit divided by the cost of the invested capital.

Margin

An accounting term that refers to the difference between the selling price of a product or service and its cost, often expressed as a percentage of the selling price.

Sales

The total revenue generated from goods or services sold by a company during a particular period.