If USCitizens Decide to Save a Smaller Fraction of Their Incomes,U

question 154

Multiple Choice

If U.S.citizens decide to save a smaller fraction of their incomes,U.S.domestic investment

• A)increases,and U.S.net capital outflow increases.
• B)increases,and U.S.net capital outflow decreases.
• C)decreases,and U.S.net capital outflow increases.
• D)decreases,and U.S.net capital outflow decreases.

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Definitions:

Default Risk

The probability that a borrower fails to meet the obligations of paying back the interest or principal on a debt on time.

Nominal Wages

Wages paid to employees that have not been adjusted for inflation, representing the amount of money earned in current dollars.

Inflation Rate

The rate at which the overall price level of goods and services increases, thereby reducing the buying power.

Nominal Wage Rates

The amount of money paid to an employee by an employer in current prices, without adjusting for inflation.