U.S. investment is financed from
A) private saving, government budget surpluses, and borrowing from the rest of the world.
B) private saving, government budget deficits, and borrowing from the rest of the world.
C) private borrowing, government budget deficits, and lending to the rest of the world.
D) private saving and borrowing from the rest of the world only.

Question

Quizplus · Accepted Answer

U.S. investment can be financed through private saving (individuals saving more than they consume), government budget surpluses (when the government spends less than it earns), and borrowing from the rest of the world (when the country imports more capital than it exports).

U.S. Investment Is Financed from