The Level of Saving in Japan Has Historically Been High

question 87

Multiple Choice

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

• A)Japan's net foreign investment has been relatively low.
• B)Japan's net exports have been relatively high.
• C)Japan's capital inflows are positive.
• D)Japan's private saving is greater than its public saving.

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Definitions:

Consumption

The use of goods and services by households or individuals.

Disposable Income

Resources earmarked for household financial activities in saving and spending following income tax calculations.

Saving

The segment of one's income that is not consumed but saved for future investments or use.

Consumption

The act of using goods and services for personal needs or to satisfy consumer demands.