If a nation's budget deficit rises,domestic private investment can remain unchanged through some combination of ________ private saving and ________ importing relative to exporting.

Question

Quizplus · Accepted Answer

When a nation's budget deficit rises, it can maintain its level of domestic private investment if there is an increase in private saving (to offset the government's increased borrowing) and a decrease in importing relative to exporting (to ensure that more capital remains within the country).

If a Nation's Budget Deficit Rises,domestic Private Investment Can Remain