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:

Profit-Maximizing

A strategy firms adopt aiming to produce the quantity of goods or services that leads to the highest possible profit.

Average Variable Cost

The variable cost per unit of output, calculated by dividing total variable costs by the quantity of output produced.

Output

The total amount of goods or services produced by a company, industry, or economy within a particular period.

Economic Profit

The difference between total revenue and total economic costs (including both explicit and implicit costs), reflecting the true economic performance of a company.