In a large open economy,an increase in ________ leads to ________.
A)desired saving;an increase in the domestic interest rate
B)desired investment;an decrease in the domestic interest rate
C)desired saving;an increase in desired investment
D)desired saving;a decrease in actual investment
E)none of the above

Question

Quizplus · Accepted Answer

In a large open economy, an increase in desired saving typically leads to a decrease in the domestic interest rate, not an increase, as the supply of loanable funds increases. This does not match any of the given options.

In a Large Open Economy,an Increase in ________ Leads to ________

In a Large Open Economy,an Increase in Leads to