Asked by Corien Frazier on May 06, 2024
Verified
Despite the fact that gross savings in the U.S.has been declining,we have been able to invest billions of dollars to purchase additional plant and equipment because
A) the federal government balanced the budget.
B) foreign savers made up the difference.
C) the government ran a budget surplus.
D) personal savings was over 10 percent.
Gross Savings
The total amount of savings generated within an economy, representing the difference between income and consumption.
Budget Surplus
A financial situation where a government's revenues exceed its expenditures over a specific timeframe.
- Analyze the role of savings and foreign investment in financing U.S. economic activities.
Verified Answer
NM
Nicole MachieleMay 09, 2024
Final Answer :
B
Explanation :
Foreign savers have invested in the U.S. economy to make up for the decline in gross savings. This is evidenced by the fact that the U.S. has a trade deficit and owes a significant amount of money to foreign countries.
Learning Objectives
- Analyze the role of savings and foreign investment in financing U.S. economic activities.