If Domestic Saving Exceeds Domestic Investment, Then Net Exports Are

question 33

Multiple Choice

If domestic saving exceeds domestic investment, then net exports are ______ and net capital outflows are ______.

• A) positive; positive
• B) positive; negative
• C) negative; negative
• D) negative; positive

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Definitions:

Dictator Games

A type of experimental game in economics where one player, the "dictator," determines how to split an endowment between themselves and another player, the "recipient."

Ultimatum Games

Represent a scenario in economic experiments where one participant proposes a division of resources, and the other can accept or reject the offer, which, if rejected, leaves both with nothing.

Heuristics

The brain’s low-energy mental shortcuts for making decisions. They are “fast and frugal” and work well in most situations but in other situations result in systematic errors.