According to the Saving and Investment Equation,if Net Foreign Investment

question 32

Multiple Choice

According to the saving and investment equation,if net foreign investment falls by $35 million

• A) national savings in excess of domestic investment will decrease by $35 million.
• B) national savings will rise by $35 million.
• C) domestic investment will fall by $35 million.
• D) national savings in excess of domestic investment will rise by $35 million.

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Definitions:

Residual

The difference between an observed value and the value predicted by a model.

Scatter Diagram

A scatter diagram, or scatter plot, is a type of plot or mathematical diagram using Cartesian coordinates to display values for typically two variables for a set of data, indicating the relationship between them.

Fitted Value

A numerical estimate or prediction obtained from a regression model that corresponds to a specific set of explanatory variables.

Starting Salary

The initial wage or remuneration an employee receives when beginning a new job.