If Net Foreign Investment in Canada Is Positive, How Must

question 187

Multiple Choice

If net foreign investment in Canada is positive, how must national saving and domestic investment be related? (Assume that the capital account is zero and net transfers are zero.)

• A)Domestic investment and national saving must also be positive.
• B)Domestic investment must be less than national saving.
• C)Domestic investment must be greater than national saving.
• D)Domestic investment can be greater than or less than national saving.
• E)Domestic investment must be falling.

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Definitions:

Hyperventilation

A condition of breathing at an abnormally rapid rate, leading to a decrease in the carbon dioxide levels in the blood, which can result in symptoms such as dizziness or tingling in the limbs.

Panic Disorder

A psychiatric disorder characterized by unexpected and repeated episodes of intense fear accompanied by physical symptoms.

Agoraphobia

A condition defined by a severe or unreasonable dread of going into open or crowded areas, leaving one's house, or being in locations where leaving is challenging.

Panic Disorder

A type of anxiety disorder characterized by sudden and repeated attacks of intense fear accompanied by physical symptoms.