According to the Saving and Investment Equation, If Net Foreign

question 250

Multiple Choice

According to the saving and investment equation, if net foreign investment falls by $35 million,

• A)national saving in excess of domestic investment will decrease by $35 million.
• B)national savings will rise by $35 million.
• C)domestic investment will fall by $35 million.
• D)national saving in excess of domestic investment will rise by $35 million.
• E)domestic public savings will fall by $35 million.

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Definitions:

Social Security Tax

A tax levied on both employers and employees to fund the Social Security program, which provides benefits for retirees, disabled persons, and survivors.

Medicare Tax

A federal tax deducted from an employee's paycheck to fund the Medicare program.

Unemployment Tax

Taxes paid by employers to fund the unemployment insurance program, providing financial assistance to unemployed workers.

Federal Income Tax

A tax levied by the U.S. government on the annual earnings of individuals, corporations, trusts, and other legal entities.