In an economy open to international trade ________.
A) saving is the difference between net exports and consumption
B) saving equals investment as long as the domestic real interest rate is equal to the world real interest rate
C) the domestic real interest rate should equal the world real interest rate as long as the economy is relatively small
D) all of the above
E) none of the above
Correct Answer:
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Q20: Why is it important,for an open economy,that
Q21: A budget deficit _.
A)may have stimulative effects
Q22: In an economy open to international trade
Q23: If government cuts taxes _.
A)national saving goes
Q24: The domestic real interest rate (r)for a
Q26: In the model of the open economy
Q27: In the long run,if government increases spending
Q28: _ typically lead to increases in _.
A)decreases
Q29: Increases in _ typically lead to decreases
Q30: How does a decline in the real
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