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 decrease
C) the sum of domestic investment and foreign investment must increase
D) foreign investment must decrease to cover the gain
C
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The law of diminishing marginal returns says that as additional units of a variable input are added to
a. fixed amounts of other inputs, total output will eventually remain constant b. varying amounts of other inputs, total output will eventually decline c. fixed amounts of other inputs, the resulting increases in total output will eventually become smaller d. varying amount of other inputs, the resulting increases in total output will eventually become smaller e. a declining amount of output, technology will eventually deteriorate
If the interest rate is 6 percent, then the present value of $5,000 received ten years from today is $2,583.34
a. True b. False Indicate whether the statement is true or false