A country's investment can be financed by _ .
A) only saving by households and firms
B) making exports exceed imports
C) national saving and foreign borrowing
D) a government budget surplus

Question

Quizplus · Accepted Answer

Investment can be financed by a country's national savings, which includes savings by households, firms, and the government. In addition, a country can also borrow from foreign sources to finance its investment. Options A, B, and D are not the only ways to finance investments as they do not necessarily provide sufficient funds to finance all types of investment.

A Country's Investment Can Be Financed by _