Figure 32-2

-Refer to Figure 32-2.At an interest rate of 3 percent,the diagram indicates that
A)there is a surplus in the market for foreign-currency exchange.
B)national saving equals domestic investment.
C)net capital outflow + domestic investment = national saving.
D)the market for foreign-currency exchange the quantity of dollars supplied equals the quantity of dollars demanded.

Question

Figure 32-2

-Refer to Figure 32-2.At an interest rate of 3 percent,the diagram indicates that
A)there is a surplus in the market for foreign-currency exchange. 
B)national saving equals domestic investment. 
C)net capital outflow + domestic investment = national saving. 
D)the market for foreign-currency exchange the quantity of dollars supplied equals the quantity of dollars demanded.

Quizplus · Accepted Answer

At an interest rate of 3 percent, the diagram indicates that net capital outflow plus domestic investment equals national saving, as this is a fundamental identity in an open economy.

Figure 32-2 -Refer to Figure 32-2.At an Interest Rate of 3 Percent,the