In Which of the Following Situations Must National Saving Rise

question 206

Multiple Choice

In which of the following situations must national saving rise?

• A)Both domestic investment and net capital outflow increase.
• B)Domestic investment increases and net capital outflow decreases.
• C)Domestic investment decreases and net capital outflow increases.
• D)Both domestic investment and net capital outflow decrease.

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Definitions:

Compound Interest

Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Future Value

The value of an investment at a specified future date, taking into account factors like interest rates and compounding.

Compounded Annually

Interest on an investment that is calculated once per year, adding to the principal amount for future interest calculations.

Profit-Sharing

A company policy of distributing a portion of net profits among its employees as a form of incentive and reward.