Answer to Question #88949 in Macroeconomics for harold simeon

Question

5


a. Is there an apparent relationship between low savings ratios and the ratio of foreign debt to GDP? Explain. (2 marks)

b. Can a nation fund its investments at a level higher than that currently provided by its income? Explain. (2 marks)

c. What are the probable longer-term implications of this type of behavior? (2 marks)

d. Is a high savings ratio a requirement for funding a high ratio of investment to GDP over the longer term? Explain. (2 marks)

Answer 1

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