In the open-economy macroeconomic model, at the equilibrium real interest rate, the amount that people (including government) want to save exactly balances desired domestic investment
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
The brewing industry is dominated by a small number of very large producers who sell a differentiated product. The market structure that best fits the brewing industry is probably
A) perfect competition. B) monopolistic competition. C) monopoly. D) oligopoly.
The Federal Reserve responded to the 2008 financial crisis in several ways. Which of the following is one of the ways the Fed responded?
A) The Fed helped Citibank to acquire General Motors and Chrysler. B) The Fed lowered the required reserve ratio on demand deposit accounts in order to increase the amount of bank reserves. C) The Fed banned investment banks from obtaining discount loans. D) The Fed lent investment banks Treasury securities in exchange for mortgage-backed securities.