Goods market equilibrium in the open economy occurs when
A) desired saving equals desired investment.
B) output equals desired consumption plus desired investment plus government spending.
C) desired consumption equals desired investment.
D) desired saving minus desired investment equals net exports.
Correct Answer:
Verified
Q39: Purchasing power parity does not hold in
Q40: Suppose the euro-yen exchange rate falls while
Q41: A decline in the exchange rate could
Q42: An improvement in the quality of U.S.goods
Q43: In an open economy,an increase in net
Q45: In an open economy,a decrease in net
Q46: In a flexible exchange-rate system,the value of
Q47: What happens in the short run in
Q48: Describe the effects of a rise in
Q49: A decrease in foreign output would cause
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents