Saving in the Australian economy shows up as investment in the Australian economy or as the Australian net foreign investment.

Question

Quizplus · Accepted Answer

When individuals, businesses or governments save money in Australia, it can be used to finance investment in the Australian economy. This can be either in the form of investments in physical capital, such as machinery or buildings, or in the form of investments in financial assets such as stocks or bonds. Alternatively, if Australians save more than they are investing domestically, the excess savings can flow abroad and show up as the Australian net foreign investment.

Saving in the Australian Economy Shows Up as Investment in the Australian