In which of the following situations must national saving rise?
A)Both domestic investment and net capital outflow increase.
B)Domestic investment increases and net capital outflow decreases.
C)Domestic investment decreases and net capital outflow increases.
D)Net exports decrease and domestic investment is unchanged.

Question

Quizplus · Accepted Answer

National saving is the sum of domestic investment and net capital outflow. If both increase, national saving must rise.

In Which of the Following Situations Must National Saving Rise