A Country Has $40 Billion of Domestic Investment and Net

question 85

Multiple Choice

A country has $40 billion of domestic investment and net capital outflows of -$20 billion.What is the country's saving?

• A)-$60 billion
• B)-$20 billion
• C)$20 billion
• D)$60 billion

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Definitions:

Consumption

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

45-Degree Line

A line in economics graphs that depict equilibrium points where the value of one variable equals the value of another; commonly used in Keynesian cross diagrams to show where aggregate expenditure equals aggregate output.

Saving

The portion of income not spent on current consumption, but rather set aside for future use or investment.

Trillion

A numerical value represented as 1,000,000,000,000 or 10^12, commonly used to quantify large sums, such as government budgets and the global economy.