According to the equation I = S + F, how can a country boost its new capital formation (investment)?

Show Answers

By utilizing domestic savings along with capital inflows from other countriesThrough the stock exchange and government budget measuresBy relying on foreign savings combined with capital outflowsVia savings and the process of financial deregulation

Explanation

The equation I = S + F indicates that investment (I) is financed by domestic savings (S) plus foreign capital inflows (F). Therefore, a country can increase investment by combining its own savings with funds coming from abroad.