According to the Saving and Investment Equation,if Net Foreign Investment

question 227

Multiple Choice

According to the saving and investment equation,if net foreign investment rises by $60 million

• A)national saving will increase by $60 million.
• B)national saving will fall by $60 million.
• C)domestic investment will rise by $60 million.
• D)private saving will fall by $60 million.

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Definitions:

Operating Activities

The component of cash flow statement that reflects the cash generated or used by the core business operations.

Net Cash

The amount of cash available after accounting for cash inflows and outflows, indicating a company's liquidity.

Indirect Method

A method of reporting net cash flow from operating activities on the cash flow statement by adjusting net income for changes in the balance sheet accounts.

Depreciable Asset

An asset that loses value over time due to wear and tear, decay, or decline in usefulness, and whose cost can be allocated over its useful life.