Suppose a Country's Net Capital Outflow Does Not Change,but Its

question 102

Multiple Choice

Suppose a country's net capital outflow does not change,but its investment rises by $250 billion.

• A)Its saving must have risen by $250 billion so its net exports have risen.
• B)Its saving must have risen by $250 billion,but its net exports are unchanged.
• C)Its saving must have fallen by $250 billion,so its net exports have fallen.
• D)Its saving must have fallen by $250 billion,but its net exports are unchanged.

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Definitions:

Defence Mechanism

Psychological strategies used by individuals to cope with reality and maintain self-image by unconsciously denying or distorting reality.

Repression

A defense mechanism where an individual unconsciously pushes disturbing thoughts, desires, or experiences out of conscious awareness.

Anxiety

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one’s daily activities.

Unconscious

An area of the mind not accessible to conscious thought, though it impacts emotions and actions.