If Canada's national saving exceeds its domestic investment,then Canada has
A)positive net capital outflows and negative net exports.
B)positive net capital outflows and positive net exports.
C)negative net capital outflows and negative net exports.
D)negative net capital outflows and positive net exports.

Question

Quizplus · Accepted Answer

When national saving exceeds domestic investment, the excess saving is invested abroad, leading to positive net capital outflows. This also means that Canada is exporting more than it is importing, resulting in positive net exports.

If Canada's National Saving Exceeds Its Domestic Investment,then Canada Has