In an open economy, there should be a
a. close positive relationship between investment and savings.
b. a close positive relationship between trade deficits and investment.
c. a negative relationship between trade deficits and savings.
d. a positive relationship between a country's savings rate and higher domestic interest rates.
C
Economics
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Which of the following is the term used to describe the expansion of a country's per capita real GDP?
A) change in factor incomes B) change in the labor force C) technological change D) economic growth
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Which of the following is an equilibrium condition for the goods market?
A) M = kPQ B) Desired saving and desired investment C) Money demand = money supply D) IS = LM
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