If Net Foreign Investment in the United States Is Positive,how

question 96

Multiple Choice

If net foreign investment in the United States 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.

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Definitions:

Retain

To keep possession of or continue to hold or employ someone or something.

Concurrent Ownership

A form of property ownership in which two or more parties possess rights to the same property at the same time.

Joint Tenancy

A form of co-ownership where two or more persons hold an undivided interest in property with the right of survivorship, meaning when one owner dies, their interest passes to the surviving co-owner(s).

Tenancy by the Entireties

A form of joint property ownership typically reserved for married couples, where each owns an undivided whole of the property.