If national savings remain unchanged and net capital outflow falls, .pdf
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If national savings remain unchanged and net capital outflow decreases, domestic investment will rise. This is because a decline in net capital outflow indicates that domestic investors are lending less abroad compared to foreign lenders investing in the country. Ultimately, an increase in domestic investment correlates with a decrease in net capital outflow.
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If national savings remain unchanged and net capital outflow falls, .pdf
- 1. If national savings remain unchanged and net capital outflow falls, what will happen to domestic investment (I)? A) investment will fall B) investment will remain unchanged C) uncertain D) investments will rise Solution Answer-D- Investment will rise Here When domestic investment will rise then net capital outflow of the country will be falls. We know that the net capital outflow means that the amount that domestic investors lend abroad minus the amount that foriegn lenders lend in our country.