If there is a decrease in world investment ________.
A)domestic saving would rise
B)net exports would decrease
C)domestic output would go up
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

A decrease in world investment would mean that there is less capital flowing into countries, which would lead to a decrease in net exports as domestic investment may decline as well. The decrease in net exports could also lead to a decrease in domestic output. However, there is no direct relationship between world investment and domestic saving, so option A is not correct.

If There Is a Decrease in World Investment ________