If domestic saving is less than domestic investment, then investment can be financed by: the budget deficit new savings instruments foreign saving higher rates of inflation higher interest rates

MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter20: Exchange Rates And The Macroeconomy
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8.. If domestic saving is less than domestic investment, then investment can be financed by:

    1. the budget deficit
    2. new savings instruments
    3. foreign saving
    4. higher rates of inflation
    5. higher interest rates

 

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