Japan’s external surplus,

Japan’s external surplus, represented in the equation X-M=S-I, shows that their amount of export beyond imports of goods and services is the same as the amount of:

A.domestic savings in excess of domestic investment.

B.domestic savings that should occur in order to keep the exchange rate stable on world markets.

C.domestic investment that must be made in order to sustain full employment.

D.b and c

Answer: A

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