Which of the following statements is not true about the relationship between national saving, investment, and net capital outflow?
A) An increase in saving associated with an equal increase in net capital outflow leaves domestic investment unchanged.
B) For a given amount of saving, an increase in net capital outflow must decrease domestic investment.
C) For a given amount of saving, a decrease in net capital outflow must decrease domestic investment.
D) Saving is the sum of investment and net capital outflow.
Correct Answer:
Verified
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