The saving-investment analysis for large open economies is somewhat more complicated than the analysis for small open economies mainly because ________
A) there is more information to keep track of for larger economies
B) there are more unknowns in larger economies
C) a larger economy may actually affect the world economy
D) all of the above
E) none of the above
C
You might also like to view...
Insurance works because it:
A. reallocates the costs of unforeseen events, sparing any individual from taking the full hit. B. prevents any one individual from experiencing all the unforeseen events. C. makes it less likely that their clients will experience unforeseen events. D. None of these statements is true.
The equilibrium in the market for loanable funds is:
A. where the amount being saved is enough for banks to cover required reserves. B. at the price at which the quantity supplied is slightly greater than quantity demanded. C. where the amount being borrowed and the amount being saved is the same. D. at the interest rate set by the Fed.