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If You Know That a Country's Net Foreign Investment Is

question 188

Essay

If you know that a country's net foreign investment is positive,what does that tell you about the relationship between the country's national saving and private investment? (Assume that the capital account is zero and net transfers are zero.)


Definitions:

Id's Drives

Basic, instinctual forces or desires that seek immediate gratification, according to Freudian psychoanalytic theory.

External World

The objective reality or the physical world that exists independently of our thoughts or perceptions.

Satisfaction

A feeling of fulfillment or contentment arising from achieving one's desires, expectations, or needs.

Pleasure Needs

The basic human requirement for experiences or activities that bring about enjoyment, satisfaction, or positive feelings.

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