*One insight that can be obtained from the national saving and investment identity is that a nation’s balance of trade is determined by:
A. foreign investment as a part of supply of financial capital.
B. each nation’s own levels of domestic saving and domestic investment.
C. foreign investment as part of the demand for financial capital.
D. all of the world government budgets and the overall global trade balance.
Answer:B
*One insight that can be obtained from the national saving and investment identity is that a nation’s balance of trade is determined by:
A. foreign investment as a part of supply of financial capital. B. each nation’s own levels of domestic saving and domestic investment. C. foreign investment as part of the demand for financial capital. D. all of the world government budgets and the overall global trade balance.
Explanation: Type: Multiple Choice