An increase in Pakistan's private saving ?
Correct answer: A. increase Pakistan's net exports and Pakistan's net capital outflow the same amount
- A. increase Pakistan's net exports and Pakistan's net capital outflow the same amount
- B. Increase Pakistan's net exports and decrease Pakistan's net capital outflow
- C. decreases Pakistan's net exports and Pakistan's net capital outflow the same amount
- D. decrease Pakistan's net exports and increase Pakistan's net capital outflow
Explanation
With investment and other conditions held constant, higher private saving increases the funds available for foreign investment. Since net exports equal net capital outflow, both rise by the same amount.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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