Statement I: U.S.investment is much higher than it otherwise would have been due to the influx of foreign investment.
Statement II: The extremely low U.S.savings rate has forced us to borrow almost $2 billion a day from foreigners to finance our federal budget and trade deficits.

Question

Quizplus · Accepted Answer

Both statements are true. Statement I highlights the impact of foreign investment on U.S. investment levels, while Statement II addresses the low savings rate in the U.S. and its reliance on foreign borrowing to finance deficits.