A financing gap is the difference between the amount of investment needed to achieve sustainable economic growth and the available financing, which includes both domestic and foreign investment. So, option A is the correct answer. Options B, C, and D are not related to the concept of the financing gap.

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A Financing Gap Is

Question 89

Multiple Choice

A financing gap is:

A) the difference between an economy's savings rate and the amount of investment needed to achieve sustainable growth.
B) the extra savings a country has beyond that needed to achieve sustainable growth.
C) the difference between the amount of investment dollars coming into a country and the amount of investment dollars going out of the country.
D) the extra investment developing countries need in foreign aid to sustain their current rate of growth.

Correct Answer: