An Increase in Net Foreign Investment Is Possible Through a Decrease

question 13

True/False

An increase in net foreign investment is possible through a decrease in national saving or a decrease in domestic investment.

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Definitions:

Noncash Activities

Transactions that do not involve the direct inflow or outflow of cash, affecting non-cash balance sheet accounts.

Investing Activities Section

Part of the cash flow statement that shows the cash spent on and received from investments in assets, loans, and other business activities.

Book Value

The value of an asset as recorded on a company’s balance sheet, representing the cost of the asset minus accumulated depreciation.

Gain

An increase in equity resulting from the sale of an asset for more than its purchase price or carrying value, not related to the company's primary operations.