In a large open economy ________
A) the effect of shifts in saving and investment on the trade balance are in the same direction as in a closed economy
B) the effect of shifts in saving and investment on net capital flows are in the same direction as in a closed economy
C) the effect of shifts in saving and investment on the domestic real interest rate and the actual levels of saving and investment are in the same direction as in a closed economy
D) all of the above
E) none of the above
C
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The figure above shows that the U.S. net ________ surplus from the tariff is ________
A) loss of; $30 million per year B) gain in; $20 million per year C) loss of; $10 million per year D) gain in; $55 million per year E) gain in; zero
Financial crises generally develop along two basic paths
A) mismanagement of financial liberalization/globalization and severe fiscal imbalances. B) stock market declines and severe fiscal imbalances. C) mismanagement of financial liberalization/globalization and stock market declines. D) stock market declines and unanticipated declines in the value of the domestic currency.