If savings in SA is R300 billion and investment in SA is R550 billion, then
A)there must be net capital inflow of R550 billion.
B)there must be net capital inflow of R250 billion.
C)the SA government must be running a R250 billion surplus.
D)the SA financial market must be experiencing a net capital outflow.

Question

Quizplus · Accepted Answer

Saving (S) = R300 billion
Investment (I) = R550 billion 
To account for the difference between saving and investment, there must be net capital inflow (CI) to the tune of (I - S) = (R550 billion - R300 billion) = R250 billion. Therefore, the best choice is B.

If Savings in SA Is R300 Billion and Investment in SA