When U.S. national saving rises, domestic investment also necessarily rises.

Question

Quizplus · Accepted Answer

An increase in U.S. national saving does not necessarily lead to an increase in domestic investment. The relationship depends on various factors, including interest rates, economic conditions, and the global financial market. Increased savings can lead to higher investment, but it can also result in increased capital outflows to foreign investments.

When US National Saving Rises, Domestic Investment Also Necessarily Rises