A country has $30 billion of domestic investment and net capital outflows of -$20 billion. What is the country's saving?
A)-$50 billion
B)-$10 billion
C)$10 billion
D)$50 billion

Question

Quizplus · Accepted Answer

Saving = Domestic Investment - Net Capital Outflows 
= $30 billion - (-$20 billion) 
= $30 billion + $20 billion 
= $50 billion 
Therefore, the country's saving is $50 billion. Option D is incorrect as it has a positive sign implying a surplus of savings. Option A is incorrect as it has a negative sign indicating a deficit in savings. Option B with $10 billion as savings is incorrect as the net capital outflows need to be added to domestic investment to calculate savings.

A Country Has $30 Billion of Domestic Investment and Net