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

question 255

Multiple Choice

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

• A)national saving 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 saving in excess of domestic investment will rise by $35 million.

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Definitions:

Distributing Cash

Refers to the process of delivering or allocating cash holdings to various parties, such as dividends to shareholders or payments to creditors.

Issuing Debt

Refers to the process by which a corporation or government raises capital by selling bonds, bills, or notes to investors.

Purchase of Merchandise

The acquisition of goods for resale, typically recorded as an inventory asset until the goods are sold.