Empirically, there is a close positive relationship between domestic savings and investment. This is consistent with what we should expect to observe in
a. a closed economy.
b. the Mundell-Flemming model with perfect capital mobility.
c. the Mundell-Flemming model with perfect capital mobility and flexible exchange rates.
d. the Mundell-Flemming model with perfect capital mobility and fixed exchange rates.
e. none of the above.
A
Economics
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Automatic stabilization refers to
A) the policy of lowering tax rates during a recession. B) the policy of increasing autonomous G during a recession. C) the effect of income taxes in lowering the multiplier effect of changes in autonomous planned spending. D) all of the above.
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A professionally managed portfolio of assets intended to provide income to retirees is called:
A. investing by proxy. B. a stock. C. a mutual fund. D. a derivative.
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