A net capital inflow occurs in open economies where investment is _______ national savings.
A) higher than
B) lower than
C) equal to
D) either higher or lower than

Question

Quizplus · Accepted Answer

A net capital inflow occurs when a country is receiving more investment from foreign sources than it is sending abroad. This means that investment is higher than national savings, as the excess investment is being financed by foreign borrowing.

A Net Capital Inflow Occurs in Open Economies Where Investment