When private and government saving in an economy exceed investment, then the government must
A) print money.
B) accumulate financial assets through lending.
C) accumulate financial assets through borrowing.
D) lower taxes.
E) none of the above.

Question

Quizplus · Accepted Answer

When private and government saving in an economy exceed investment, it implies that there is excess capital. This excess can be used by the government to lend to others, thereby accumulating financial assets through lending. This does not necessarily involve printing money, borrowing, lowering taxes, or an option that is not listed.

When Private and Government Saving in an Economy Exceed Investment