Explain Why Saving Need Not Equal Domestic Investment in an Open

question 56

Essay

Explain why saving need not equal domestic investment in an open economy.

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Definitions:

Political Considerations

Political considerations involve the influence of government policy, political climate, or legislative actions on decision-making processes.

Unconditional Cash Transfers

Direct payments given to individuals or households without any requirements for the receipt of the money, used to reduce poverty or inequality.

Cultural Obstacles

Barriers that stem from cultural differences and prevent or hinder progress in understanding, social integration, and economic development.

Long-Term Earnings

The accrued amount of income that an entity is expected to generate over an extended period, often considered in terms of years or over the entity's lifespan.