Last Year a Country Had $700 Billion of Saving and $900

question 40

Essay

Last year a country had $700 billion of saving and $900 of investment. What was its net capital outflow? How is it possible for a country to have investment that exceeds saving?

---

Definitions:

Solvency Ratio

A financial metric used to measure a company's ability to meet its long-term debts and financial obligations.

Price-Earnings Ratio

A valuation metric for companies, calculated by dividing the current market price of a stock by its earnings per share.

Discontinued Operations

Components of a company that have been sold or terminated, reported separately in financial statements for clarity.

Continuing Operations

Refers to the parts of a business expected to continue operating and generating revenue over the long term, excluding any discontinued operations.