A country has domestic investment of $200 billion.Its citizens purchase $600 of foreign assets and foreign citizens purchase $300 of its assets.What is national saving?
A)$400 billion
B)$500 billion
C)$600 billion
D)$800 billion

Question

Quizplus · Accepted Answer

National saving is equal to domestic investment plus net foreign investment. 
Domestic investment = $200 billion 
Net foreign investment = (-$600 billion) + $300 billion = -$300 billion 
Therefore, national saving = $200 billion - $300 billion = $500 billion.

A Country Has Domestic Investment of $200 Billion