Solved

In a Large Open Economy,the Home Country's Saving and Investment

Question 97

Multiple Choice

In a large open economy,the home country's saving and investment equations are: Sd = 200 + 700rw and Id = 300 - 200rw.The foreign country's saving and investment equations are: Sd = 50 + 300rw and Id = 75 - 50rw.In equilibrium,the world real interest rate =


A) 0) 10.
B) 0) 20.
C) 0) 25.
D) 0) 40.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents