If the difference between a country's savings and investment is negative,it implies that
A)a country's domestic savings is insufficient to finance domestic investment.
B)a government budget deficit exists.
C)a country's domestic savings is sufficient to finance domestic investment
D)none of the options

Question

Quizplus · Accepted Answer

A negative difference between a country's savings and investment implies that the country's domestic savings are inadequate to finance domestic investment, thus causing a need for external borrowing or reduced investment.

If the Difference Between a Country's Savings and Investment Is