3 thoughts on “Current Account = Savings – Investment

  1. Suppose domestic saving is insufficient to finance Domestic investment. How will the domestic investment be financed?

    It will be financed by investment from abroad. These capital flows are a credit on the capital account and will be matched by a deficit on the current account.

    I don’t understand,
    “””””These capital flows are a credit on the capital account and will be matched by a deficit on the current account.”””””

    Only I will take credit for my investment. why will be matched by deficit on the current account??????

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