In an Open Economy, National Saving Can Be Less Than

question 188

True/False

In an open economy, national saving can be less than investment.

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Definitions:

Long-Term Debt Ratio

A financial ratio that measures the proportion of a company's total debt that is due more than one year in the future.

Common-Base Year Value

A method used in economics and financial analysis to adjust values for comparison by fixing the prices of goods and services to a specific base year, neutralizing the effect of inflation.

Accounts Receivable

Funds that customers owe to a company for products or services they have received but have not yet compensated for.

Inventory

The total amount of goods that a company holds, intending to sell them in the normal course of business.