*The national saving and investment identity teaches that the rest of the economy can absorb an inflow of foreign financial capital by:
A. reduced private savings, leaving domestic investment and public saving unchanged.
B. higher domestic investment, leaving private and public savings unchanged.
C. greater government borrowing, leaving domestic saving and investment unchanged.
D. leaving domestic saving and investment unchanged using any of the above.
Answer:D
*The national saving and investment identity teaches that the rest of the economy can absorb an inflow of foreign financial capital by:
A. reduced private savings, leaving domestic investment and public saving unchanged. B. higher domestic investment, leaving private and public savings unchanged. C. greater government borrowing, leaving domestic saving and investment unchanged. D. leaving domestic saving and investment unchanged using any of the above.
Explanation: Type: Multiple Choice