If Net Foreign Investment Is Positive,which of the Following Must

question 186

Multiple Choice

If net foreign investment is positive,which of the following must be true? (Assume that the capital account is zero and net transfers are zero.)

• A)Capital outflows are less than capital inflows.
• B)Domestic investment must be less than national saving.
• C)Net exports are negative.
• D)None of the above are true when net foreign investment is positive.

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