If Net Foreign Investment in the United States Is Positive,how

question 96

Multiple Choice

If net foreign investment in the United States is positive,how must national saving and domestic investment be related? (Assume that the capital account is zero and net transfers are zero.)

• A)Domestic investment and national saving must also be positive.
• B)Domestic investment must be less than national saving.
• C)Domestic investment must be greater than national saving.
• D)Domestic investment can be greater than or less than national saving.

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Definitions:

Producer Surplus

The difference between the market price for a good or service and the lowest price at which producers would still sell it.

Reports

Documents that present data, findings, and analysis on various subjects, often used in business and research to inform decisions.

Equilibrium Price

The price at which the quantity demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Consumer Surplus

The variance highlighting consumers' willingness to pay a higher amount than what is actually spent on a good or service.