If national saving increases,________.(Assume that the capital account is zero and net transfers are zero. )
A)the sum of domestic investment and net exports must decrease
B)the sum of domestic investment and foreign investment must increase
C)the sum of domestic investment and foreign investment must decrease
D)foreign investment must decrease to cover the gain

Question

Quizplus · Accepted Answer

When national saving increases, it allows for more resources to be available for both domestic and foreign investment, leading to an increase in the sum of domestic investment and foreign investment.

If National Saving Increases,________