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saving exceeds domestic investment in japan, which generates a financial account deficit in jaoan's balance of...

saving exceeds domestic investment in japan, which generates a financial account deficit in jaoan's balance of payments .
true or false
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Answer #1

When saving exceeds the Domestic investment, then there is Surplus in the current account of the balance of payments of Japan. A current account Surplus is to be matched by an equal amount of financial account deficit in the balance of payments of Japan for the over-all Balance of Payment to balance.

Therefore, when saving exceeds the Domestic investment in Japan, it generates a financial Account Deficit in Japan's balance of payments.

Hence, the above given statement is True.

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