Which of the Following Statements Is Not True About the Relationship

question 2

Multiple Choice

Which of the following statements is not true about the relationship between national saving, investment, and net capital outflow?

• A) An increase in saving associated with an equal increase in net capital outflow leaves domestic investment unchanged.
• B) For a given amount of saving, an increase in net capital outflow must decrease domestic investment.
• C) For a given amount of saving, a decrease in net capital outflow must decrease domestic investment.
• D) Saving is the sum of investment and net capital outflow.

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Definitions:

Selective Attention

The ability to focus on only one stimulus from among all sensory input.

Retrieve

The action of getting something back or regaining possession.

Selective Attention

The process of focusing on a particular object in the environment for a certain period of time, while ignoring irrelevant information.

Noisy Restaurant

A dining establishment with high levels of background noise, often impacting the dining experience and conversation.