If at a given real interest rate desired national saving is $60 billion, domestic investment is $30 billion, and net capital outflow is $20 billion, then at that real interest rate in the loanable funds market there is a
a. surplus. The real interest rate will rise.
b. surplus. The real interest rate will fall.
c. shortage. The real interest rate will rise.
d. shortage. The real interest rate will fall.
b
Economics
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Suppose that a country has a comparative advantage in agricultural products. When trade occurs, the nominal and real prices of the agricultural good will:
a. both fall. b. both rise. c. both remain constant. d. The nominal price will fall and the real price will rise.
Economics
Current income minus spending on current needs equals:
A. transfers. B. wealth. C. saving. D. investment.
Economics