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In 2012, gross private domestic investment (I) in Japan was 21.2% of GDP.  Japanese net financial inflows were 2.2% of GDP.  What percentage of GDP was Japanese national saving?Group of answer choices19% of GDP-19% of GDP23.4% of GDP-23.4% of GDP

Question

In 2012, gross private domestic investment (I) in Japan was 21.2% of GDP.  Japanese net financial inflows were 2.2% of GDP.  What percentage of GDP was Japanese national saving?Group of answer choices19% of GDP-19% of GDP23.4% of GDP-23.4% of GDP

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Solution

To find the percentage of Japanese national saving as a percentage of GDP, we need to subtract the net financial inflows from the gross private domestic investment and then divide it by GDP.

Step 1: Subtract the net financial inflows from the gross private domestic investment: Gross private domestic investment - Net financial inflows = National saving

21.2% - 2.2% = 19%

Step 2: Divide the national saving by GDP: National saving / GDP = Percentage of GDP

19% / 100% = 19%

Therefore, the percentage of Japanese national saving as a percentage of GDP is 19%.

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