In which situation 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

When both domestic investment and net capital outflow increase, national saving must rise to finance the increased demand for funds.

In Which Situation Must National Saving Rise