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:

Deficit Principle

A concept indicating that the less frequently a reward is available or the less a need is satisfied, the more value or desirability that reward or satisfaction of the need has.

Self-Actualisation Needs

The highest level in Maslow's hierarchy of needs, representing the fulfillment of one's potential and the realization of one's abilities and talents.

Maslow's Hierarchy

A psychological theory proposing that humans have five levels of needs, ranging from basic physiological needs to self-actualization, that motivate their behavior.