The Relation Between a Country's Level of Saving and Investment

question 75

Multiple Choice

The relation between a country's level of saving and investment:

• A)affects its trade balances.
• B)does not affect an open economy.
• C)has often been used to correct a trade deficit but not a trade surplus.
• D)pertains to trade surpluses only.

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Definitions:

Physical Availability

The degree to which a product or service can be obtained by the consumer, often relating to its distribution, placement, and stock levels in the marketplace.

Actor-Observer Effect

A cognitive bias in which people tend to attribute their own actions to external factors and others' actions to their personality or disposition.

Self-Serving Bias

A common tendency for individuals to attribute their successes to personal characteristics, while attributing their failures to external factors.

Proximity

The physical or psychological closeness between people, often influencing attraction and relationships.