A Nation That Is Running a Savings Deficit

question 9

Multiple Choice

A nation that is running a savings deficit

• A) must spend more than it produces.
• B) will invest domestically more than it saves.
• C) must have a net capital outflow.
• D) A and B only.

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Definitions:

Joint Return

A tax return filed by married couples who choose to combine their taxable income into one return, potentially leading to tax benefits.

OASDI

The Old-Age, Survivors, and Disability Insurance program, part of Social Security in the United States, funded through payroll taxes.

Hospital Insurance

A type of health insurance coverage that pays for hospitalization expenses, surgeries, and other medical procedures.

OASDI

Old-Age, Survivors, and Disability Insurance; the official name for Social Security in the United States.