Question

The saving and investment equation

a. shows that a country with negative NFI must be saving less than it is investing domestically.
b. can be​ written: S​ = I​ + NFI.
c. tells us that savings will be invested domestically or overseas.
d. All of the above.

Answer 1

Answer: The correct answer is "d. All of the above.".

Explanation: These statements are correct according to the saving and investment equation because this equation shows that a country with negative NFI must be saving less than it is investing domestically. Also can be​ written: (S​ = I​ + NFI) and tells us that savings will be invested domestically or overseas.