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7. Holding national savings constant, an increase in domestic investment must be associated
with: (a) an increase in the current account and, over time, a decline in net foreign assets. (b) a
fall in the current account and, over time, a fall in net foreign assets. (c) an increase in the current
account and, over time, a rise in net foreign assets. (d) a fall in the current account and, over
time, a rise in net foreign assets. (e) None

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  • 1. 7. Holding national savings constant, an increase in domestic investment must be associated with: (a) an increase in the current account and, over time, a decline in net foreign assets. (b) a fall in the current account and, over time, a fall in net foreign assets. (c) an increase in the current account and, over time, a rise in net foreign assets. (d) a fall in the current account and, over time, a rise in net foreign assets. (e) None