If U.S.citizens decide to save a smaller fraction of their incomes,U.S.domestic investment
A)increases,and U.S.net capital outflow increases.
B)increases,and U.S.net capital outflow decreases.
C)decreases,and U.S.net capital outflow increases.
D)decreases,and U.S.net capital outflow decreases.

Question

Quizplus · Accepted Answer

If U.S. citizens decide to save a smaller fraction of their incomes, then there will be less money available for domestic investment. This will lead to a decrease in U.S. domestic investment and a decrease in U.S. net capital outflow.

If USCitizens Decide to Save a Smaller Fraction of Their Incomes,U