In goods market equilibrium in an open economy,
A. the desired amount of national saving must equal the desired amount of domestic investment plus the amount lent abroad.
B. the desired amount of exports must equal the desired amount of imports.
C. the desired amount of exports must equal the desired amount of imports less the amount lent abroad.
D. the desired amount of national saving must equal the desired amount of domestic investment.
Answer: A
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A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
Other things being equal, when average productivity falls:
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