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If domestic investment is less than domestic savings, then

Select the correct answer below:
A. exports are less than imports
B. exports are greater than imports
C. investors will not have enough capital
D. there will be a net inflow of financial capital

Sagot :

GinnyAnsweridn

Final answer:

When domestic investment is lower than domestic savings, there will be a net inflow of financial capital and the surplus will be invested abroad.


Explanation:

In this scenario, if domestic investment is less than domestic savings, it indicates that there will be a net inflow of financial capital into the country. This means that the extra financial capital will be invested abroad due to the imbalance between domestic savings and investment.


Learn more about Trade balance and financial capital flow here:

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