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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