other things the same, if a country has a trade deficit and saving rises, group of answer choices net capital outflow rises, so the trade deficit increases. net capital outflow falls, so the trade deficit increases. net capital outflow rises, so the trade deficit decreases. net capital outflow falls, so the trade deficit decreases. next

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23-12-2022
Business

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other things the same, if a country has a trade deficit and saving rises, group of answer choices net capital outflow rises, so the trade deficit increases. net capital outflow falls, so the trade deficit increases. net capital outflow rises, so the trade deficit decreases. net capital outflow falls, so the trade deficit decreases. next

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contexto38 contexto38 · Answer 1 · 2022-12-28T07:19:32+01:00

Out of the choices provided above, it can be said that other things the same, if a country has a trade deficit and saving rises, the net capital outflow falls, so the trade deficit decreases. Therefore, the option D holds true.

The trade deficit can be referred to or considered as the condition wherein there is an excess of expenses against the revenues generated during a given period of time. When the savings increase, the demand for imported goods decreases, thereby leading to a fall in the capital outflow and decrease in the trade deficit.

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