1. This question is based on the article, "Lean on me," published by The Economist in its March 31, 2016 print edition. In answering the following questions, note that when a country grows slowly, its demand for investment is relatively low. Also, keep in mind that all countries in the Eurozone use the same currency (the euro) and trade freely among themselves.

https://www.economist.com/finance-and-economics/2016/03/31/lean-on-me

Answer:

The fundamental macroeconomic identity implies that the sum of private, public, and foreign savings always equals aggregate investment (this is known as the savings-investment identity; for more detail, see Module 2 Background Notes, pp. 7-10). Before the global financial crisis, peripheral European countries were receiving significant amounts of foreign savings from Northern European countries.