If National Saving Decreases

question 31

Multiple Choice

If national saving decreases

• A)the sum of domestic investment and net exports must increase.
• B)the sum of domestic investment and net foreign investment must increase.
• C)the sum of domestic investment and net foreign investment must decrease.
• D)net foreign investment must increase to cover the loss.

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Definitions:

Revenues

Income that a company receives from its normal business activities, typically from the sale of goods and services to customers.

Financing

The means by which companies or governments raise funds for their activities, by issuing debt, equity, or other financial instruments.

Net Income

A company's profit margin following the removal of all operational costs and taxes from its revenue.

Total Stockholders' Equity

The total amount of funds contributed by shareholders and retained earnings within a company.