Think of the circular flow and the expenditure model ( savings is the total amount of savings by domestic agents, investment is the total amount of financing domestic firms receive). Total savings = domestic savings + FI & Total investment home investments + DI. Please Choose the correct answers:!!! If NX < 0 then: A.) FA < 0 to balance the Balance of Payments B .) The balance of payments cannot regain balance. C) Savings > Investment domestically (home), to pay for imports through the financial account D.) Savings < Investment domestically (home) since foreign savings in the domestic economy (DI) balances BOP (D> FI).

Think of the circular flow and the expenditure model ( savings is the total amount of savings by domestic agents, investment is the total amount of financing domestic firms receive). Total savings = domestic savings + FI & Total investment home investments + DI. Please Choose the correct answers:!!! If NX < 0 then: A.) FA < 0 to balance the Balance of Payments B .) The balance of payments cannot regain balance. C) Savings > Investment domestically (home), to pay for imports through the financial account D.) Savings < Investment domestically (home) since foreign savings in the domestic economy (DI) balances BOP (D> FI).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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