The Level of Saving in Canada Has Historically Been Low

question 166

Multiple Choice

The level of saving in Canada has historically been low relative to the level of domestic investment.Based on this information, we would expect that

• A)Canadian net foreign investment has been relatively high.
• B)Canadian net exports have been relatively low.
• C)Canadian capital inflows are negative.
• D)Canadian private saving is less than its public saving.
• E)Canadian public savings has been low.

---

Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales over a certain period, such as rent, salaries, and insurance.

Variable Costs

Costs that vary in direct proportion to changes in levels of production or sales.

Fixed Costs

Expenses that do not change in proportion to the level of production or sales activities, such as rent, salaries, and insurance premiums.

Net Income

The total profit of a company after all revenues, costs, and expenses have been deducted, often referred to as the bottom line.