The Chinese Saving Which Gave Rise to Its Current Account

question 47

True/False

The Chinese saving which gave rise to its current account surplus has been described as a 'saving glut'.

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Definitions:

Price

The monetary value assigned to the acquisition of a service or good.

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually pay.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive.

Equilibrium

A state of balance in a market or economy where supply equals demand, with no external influences causing disruption.