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:

Present Value

The value today of the stream of expected future annual income that a property generates.

Interest Rate

Interest paid divided by amount borrowed.

Economic Rent

The excess payment to a resource above what it is necessary to pay to secure its use.

Landlords

Individuals or entities who own property that is rented or leased to others, receiving rental income in return.