At the equilibrium real interest rate, the amount that people (including government) want to save exactly balances the desired quantity of net foreign investment.

Question

Quizplus · Accepted Answer

At the equilibrium real interest rate, the amount that people (including government) want to save exactly balances the desired quantity of investment, not net foreign investment. Net foreign investment is a separate concept related to a country's external financial activities.

At the Equilibrium Real Interest Rate, the Amount That People