Answer to Question #89519 in Macroeconomics for anamika

Question

Can a nation fund its investments at a level higher than that currently provided by its income?Explain.

Answer 1

Yes, a country can finance it at a higher level.

 There are international investments driven by international capital movements.

And in order for a country to finance its investments at a level above its income, in addition to income channeled to financing investments, there must be foreign investments