If other things remain the same, if a country saves less, then
A)net capital outflow rises, so net exports rise.
B)net capital outflow rises, so net exports fall.
C)net capital outflow falls, so net exports rise.
D)net capital outflow falls, so net exports fall.

Question

Quizplus · Accepted Answer

If a country saves less, it has less capital available for investment both domestically and abroad, leading to a decrease in net capital outflow. Consequently, with less capital flowing out, the country will have fewer resources to finance net exports, causing them to fall.

If Other Things Remain the Same, If a Country Saves