A country has $60 million of saving and domestic investment of $40 million.Net exports are
A)$20 million.
B)-$20 million.
C)$100 million.
D)-$100 million.

Question

Quizplus · Accepted Answer

The national saving and domestic investment equation is given by:
Saving = Investment + Net exports
Here, we have Saving = $60 million, Investment = $40 million.
Therefore, we can find the value of Net exports as:
Net exports = Saving - Investment
Net exports = $60 million - $40 million
Net exports = $20 million
Hence, the correct answer is A) $20 million.

A Country Has $60 Million of Saving and Domestic Investment