If total domestic savings exceeds domestic investment,then the country will:

Question

Quizplus · Accepted Answer

When total domestic savings exceed domestic investment, it typically means that the country is not using all of its savings for domestic investment purposes. The excess savings are likely to be invested abroad, leading to a capital outflow. This situation often correlates with the country running a trade surplus, as the excess savings are used to purchase foreign assets, and the country exports more than it imports.

If Total Domestic Savings Exceeds Domestic Investment,then the Country Will