Foreign Saving Is Used for Domestic Investment When Foreigners Engage

question 5

Multiple Choice

Foreign saving is used for domestic investment when foreigners engage in

• A)foreign direct investment.
• B)foreign portfolio investment.
• C)either foreign direct investment or foreign portfolio investment.
• D)None of the above is correct.

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Definitions:

Availability of Substitutes

The presence of alternative products or services that consumers can choose instead of the primary product, affecting the demand and price elasticity of goods.

Demand for Gasoline

The consumer's desire and willingness to pay for gasoline, influenced by its price, consumer income, and the prices of substitutes and complements.

Inelastic Demand

A market condition in which the demand for a product does not change significantly when its price increases or decreases.

Necessity

A requirement or an indispensable item essential for survival or the functioning of a system.