If S = National Saving, I = Private Investment and NFI

question 102

Multiple Choice

If S = national saving, I = private investment and NFI = net foreign investments, then:

• A)S + I = NFI.
• B)S = I + NFI.
• C)S = I - NFI.
• D)S + NFI = I.

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Definitions:

Price Decrease

A decline in the cost of a good or service in the market.

Lobster Consumption

The amount of lobster that is consumed by individuals or populations within a certain timeframe.

Cross-price Elasticity

A gauge of the reaction in the amount of one product demanded when there's a price change in another product.

Substitutes

Goods or services that can be used in place of each other, where the increase in the price of one leads to an increase in the demand for the other.