Suppose a Country's Net Capital Outflow Does Not Change, but Its

question 50

Multiple Choice

Suppose a country's net capital outflow does not change, but its investment declines by $420 billion. Its saving must have

• A)fallen by $420 billion, so its net exports have risen.
• B)fallen by $420 billion, but its net exports are unchanged.
• C)risen by $420 billion, so its net exports have fallen.
• D)risen by $420 billion, but its net exports are unchanged.

---

Definitions:

Chi-Square Test

A statistical test used to determine if there is a significant difference between observed frequencies and expected frequencies in categorized datasets.

Independence

A situation in statistics where two events are not influenced by each other, and the occurrence of one does not affect the probability of occurrence of the other.

Chi-Square Statistic

A statistical measure used to evaluate the differences between observed and expected frequencies in categorical variables.

Observed Frequencies

The number of times a particular value or event actually occurs in a dataset.