If National Saving Increases, ________

question 117

Multiple Choice

If national saving increases, ________.(Assume that the capital account is zero and net transfers are zero.)

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

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Definitions:

P(A)

The probability of an event A occurring in a given statistical experiment or context.

P(B)

P(B) denotes the probability of an event B occurring in the context of probability theory and statistics.

Mutually Exclusive

Describes two events that cannot occur at the same time. The occurrence of one event means the other cannot occur.

Independent Events

Two or more events where the occurrence of one event does not affect the probability of the other events occurring.