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:

SQ3R Method

A study strategy designed to improve reading comprehension and retention, consisting of Survey, Question, Read, Recite, and Review steps.

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, often known as the "I-knew-it-all-along" effect.

Testable Hypotheses

are theories or predictions that can be empirically tested through experimentation or observation to determine their validity.

Illusory Correlation

The perception of a relationship between two variables when no such relationship exists, often leading to cognitive biases.