According to the saving and investment equation,if net foreign investment rises by $60 million
A)national saving will increase by $60 million.
B)national saving will fall by $60 million.
C)domestic investment will rise by $60 million.
D)private saving will fall by $60 million.

Question

Quizplus · Accepted Answer

National saving increases by the amount of the rise in net foreign investment, as the saving and investment equation in an open economy states that national saving equals domestic investment plus net foreign investment.

According to the Saving and Investment Equation,if Net Foreign Investment