As Australia's net foreign investment is negative, domestic investment must be greater than national saving.

Question

Quizplus · Accepted Answer

Net foreign investment is calculated as the difference between a country's total foreign assets and total foreign liabilities. When a country has a negative net foreign investment, it means that it owes more to foreign investors than foreigners owe to it. This implies that the country is investing more abroad than foreigners are investing in it, which indicates that domestic investment is greater than national saving.

As Australia's Net Foreign Investment Is Negative, Domestic Investment Must