Country B has private savings of $70 billion and investment expenditures of $60 billion. How much is Country B's deficit?
A) -$130 billion
B) -$10 billion
C) $10 billion
D) $130 billion

Question

Quizplus · Accepted Answer

A country's deficit or surplus is determined by the difference between its savings and its investment expenditures. In this case, Country B has private savings of $70 billion and investment expenditures of $60 billion, leading to a surplus (not a deficit) of $10 billion ($70 billion - $60 billion = $10 billion).

Country B Has Private Savings of $70 Billion and Investment