If you know that a country's net foreign investment is positive, what does that tell you about the relationship between the country's national saving and private investment? (Assume that the capital account is zero and net transfers are zero.)
What will be an ideal response?
For any country, national saving must equal investment, where investment is the sum of domestic private investment and net foreign investment (S = I + NFI). Rearranging the saving and investment equation, NFI = S - I, so that if a country has positive net foreign investment, it must be saving more than it is investing domestically.
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Wanda Rumble promotes boxing matches. She makes $6,500 per fight. Which cost is most relevant to a decision as to whether to promote one more fight?
a. the total cost of promoting all boxing matches during the year b. the marginal cost of promoting one additional boxing match c. the average fixed cost of promoting a boxing match d. the average total cost of promoting a boxing match
Nondepository institutions:
A. do not serve as intermediaries. B. only transform assets. C. do not accept deposits. D. only serve as brokers.