If You Know That a Country's Net Foreign Investment Is

question 188

Essay

If you know that a country's net foreign investment is positive,what does that tell you about the relationship between the country's national saving and private investment? (Assume that the capital account is zero and net transfers are zero.)

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Definitions:

Discontinuity Effect

The phenomenon where groups are more likely to engage in extreme or aggressive behavior compared to individuals acting alone.

Hostile Competition

A form of rivalry where participants engage in aggressive behaviors and tactics to win or outperform each other.

Rationalization

the process of justifying behaviors or attitudes with logical, plausible reasons, even if these are not the true underlying motivations.

Political Goals

Objectives set by individuals or groups related to governing, influencing policy, or achieving power within a political framework.