If net foreign investment is negative, which of the following must be true?
A)Capital outflows are greater than capital inflows.
B)Domestic investment must be greater than national saving.
C)Net exports are positive.
D)Private saving is greater than public saving.
E)Canada's stock of foreign assets is growing faster than foreigners' stocks of Canadian assets.

Question

Quizplus · Accepted Answer

When net foreign investment is negative, it implies that the country is borrowing more from abroad than it is lending, which means domestic investment exceeds national saving.

If Net Foreign Investment Is Negative, Which of the Following