The intertemporal model is NOT used in determining which of the following?
A) how yearly international imbalances affect the long-run wealth or debt of a nation
B) how a nation must borrow each year the difference between payments to the rest of the world and income from the rest of the world
C) how a nation's external debt can grow to unsustainable levels as a result of persistent imbalances
D) how a nation must save each year the amount equal to the difference between payments to the rest of the world and income from the rest of the world

Question

Quizplus · Accepted Answer

The intertemporal model is used to determine how a nation must save each year the amount equal to the difference between payments to the rest of the world and income from the rest of the world. It is not used in determining how yearly international imbalances affect the long-run wealth or debt of a nation, how a nation must borrow each year the difference between payments to the rest of the world and income from the rest of the world, or how a nation's external debt can grow to unsustainable levels as a result of persistent imbalances.

The Intertemporal Model Is NOT Used in Determining Which of the Following