Marginal revenue product equals the marginal physical product multiplied by the quantity demanded.

A large country imposes capital controls that prohibit foreign borrowing and lending by domestic residents. The country is currently running a financial account surplus. The imposition of the capital controls will cause

A) net exports to decrease. B) real domestic interest rates to rise. C) real world interest rates to rise. D) desired national saving to fall.

Describe how the investment component of GDP is distinct from the other components

What will be an ideal response?