In 2010, China's overall savings rate was nearly 51% of GDP, the highest in the world....

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In 2010, China's overall savings rate was nearly 51% of GDP, the highest in the world. China's domestic investment rate, at 43%, was also high, but not as high as its savings rate. What do these facts imply about China's current-account balance in 2010? In 2010, China's overall savings rate was nearly 51% of GDP, the highest in the world. China's domestic investment rate, at 43%, was also high, but not as high as its savings rate. What do these facts imply about China's current-account balance in 2010?

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ANSWER Chinas high savings rate suggests that there is a large pool of ... View the full answer