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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