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- Subject
- Budget Deficits And The Trade Balanceeconomics-mcqs › budget-deficits-and-the-trade-balance
- Published
- 2 Jun 2019
- Last updated
- 28 May 2026
What is the effect of a rise in Pakistan's private savings on its net exports and net capital outflow?
Multiple choice question for Budget Deficits And The Trade Balance. Select an option, then review the explanation below.
Explanation
An increase in Pakistan’s private savings leads to a simultaneous rise in both net exports and net capital outflow by the same magnitude, reflecting the balance between domestic saving and foreign investment.
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