If Japan's national saving exceeds its domestic investment, then Japan has
A)positive net capital outflows and negative net exports.
B)positive net capital outflows and positive net exports.
C)negative net capital outflows and negative net exports.
D)negative net capital outflows and positive net exports.

Question

Quizplus · Accepted Answer

When a country's national saving exceeds its domestic investment, it implies that the country is lending to the rest of the world, resulting in positive net capital outflows. This also means that the country is exporting more than it is importing, leading to positive net exports.

If Japan's National Saving Exceeds Its Domestic Investment, Then Japan