The gap between savings and investment is almost exactly:
A) the government deficit.
B) the balance of payments.
C) direct foreign investment.
D) the trade balance.

Question

Quizplus · Accepted Answer

The gap between savings and investment is essentially the same as the trade balance because they are both essentially the same concept - excess savings can either be invested domestically or used to purchase imports, creating a trade deficit. Therefore, the correct choice is D) the trade balance.

The Gap Between Savings and Investment Is Almost Exactly