Asked by
Ehimy Garcia
on Oct 12, 2024
Verified
Statement I: U.S.investment is much higher than it otherwise would have been due to the influx of foreign investment.
Statement II: The extremely low U.S.savings rate has forced us to borrow almost $2 billion a day from foreigners to finance our federal budget and trade deficits.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Foreign Investment
The inflow of capital from external investors into a country to purchase assets such as property, stocks, or businesses.
Savings Rate
is the proportion of disposable income that households save rather than spend on consumption.
Federal Budget
A government plan for revenue and spending for a coming fiscal year, detailing how funds will be allocated among various government departments and programs.
- Comprehend the influence of savings rates on the enhancement of productivity growth.
Verified Answer
DR
Learning Objectives
- Comprehend the influence of savings rates on the enhancement of productivity growth.