The Sum of National Saving and Capital Inflows from Abroad

question 75

Multiple Choice

The sum of national saving and capital inflows from abroad must equal:

• A)domestic investment in new capital goods.
• B)capital outflows.
• C)aggregate demand.
• D)the trade deficit.

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Definitions:

Explanations

The process of making something clear or understandable, often used to describe how phenomena occur or why they are as they are.

Behaviors

Observable actions or reactions of an individual, often in response to the environment or stimuli.

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Fundamental Attribution Error

The tendency to overestimate the effect of personality or disposition and underestimate the effect of the situation in explaining social behavior.