In an open economy,an increase in the pool of funds available for gross investment can arise either from a(n)________ in national saving,a(n)________ in capital inflows,or a(n)________ in capital outflows.

Question

Quizplus · Accepted Answer

An increase in national saving or capital inflows increases the pool of funds for investment, while a decrease in capital outflows also increases available funds domestically.

In an Open Economy,an Increase in the Pool of Funds