Other things the same,if a country saves more,then
A)net capital outflow rises,so net exports rise.
B)net capital outflow rises,so net exports fall.
C)net capital outflow falls,so net exports rise.
D)net capital outflow falls,so net exports fall.

Question

Quizplus · Accepted Answer

Saving more means that investment within the country is increasing, which leads to an increase in the net capital outflow (the difference between the amount of domestic savings invested abroad and the amount of foreign savings invested domestically). As a result, net exports (the difference between exports and imports) also increase because the increase in investment abroad leads to an increase in foreign demand for domestic goods and services.

Other Things the Same,if a Country Saves More,then