Suppose the government of a small open economy reduces its spending, so that national saving increases. The result is
A) an increase in the real interest rate.
B) an increase in net exports.
C) a decrease in the real interest rate.
D) an increase in investment.
B
Economics
You might also like to view...
In December 2014, the average price of gasoline in the United States was $2.50 per gallon and consumers bought 7 percent more gasoline than they had during April 2014, when the average price was $3.60 per gallon
Based on these numbers, what was the price elasticity of demand for gasoline from April 2014 to December 2014? A) -0.02 B) -0.19 C) -1.01 D) -2.26
Economics
One difficulty of computing the value of GDP is that there are no market prices for
a. exports and imports. b. business investments. c. government goods and services. d. resource values.
Economics