The Total Amount That Is Available to Fund Domestic Investment

question 81

Multiple Choice

The total amount that is available to fund domestic investment in a year equals:

• A) government borrowing plus foreign investor borrowing plus loans to businesses.
• B) private saving.
• C) foreign investments plus government budget surplus.
• D) government saving plus foreign saving plus private saving.

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Definitions:

Long-Term Debt

Refers to loans or other forms of financial obligation that are due for repayment more than one year into the future.

Shares of Stock

Shares of stock represent units of ownership in a company or financial asset, providing the shareholder with a proportionate part of the company's profits and assets.

Long-Term Solvency

Measures a company's ability to meet its long-term financial obligations and commitments.