If lower profits in foreign countries result in decreased investment from foreign countries into the United States,continued investment growth from saving will have to rely more on
A)U.S.household saving.
B)Local government saving from deficit spending.
C)Federal government saving from deficit spending.
D)Stock market investment.

Question

Quizplus · Accepted Answer

If foreign countries are investing less in the United States, then investment growth will have to come from domestic sources. Out of the options provided, U.S. household saving is the only plausible choice for increased investment growth, as local and federal government savings are typically used for deficit reduction rather than investment, and stock market investments do not necessarily translate to increased investment in the domestic economy.

If Lower Profits in Foreign Countries Result in Decreased Investment