In an open economy, domestic investment equals:

A. domestic saving plus net capital outflows.
B. domestic saving.
C. net capital inflows.
D. domestic saving plus net capital inflows.

Answer: D

Economics

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An increase in ________ tends to increase ________ and therefore increase ________

A) cost; price; supply B) cost; demand; price C) demand; price; cost D) supply; cost; price

Economics

Steady-state investment per worker is positively related to the capital—labor ratio because the higher the capital—labor ratio

A) the lower the capital depreciation rate. B) the greater the amount of resources available for capital investment. C) the more investment per worker is required to replace depreciating capital. D) the less the economy needs to equip new workers with the same high level of capital.

Economics