If a Country Has a High Savings Rate Relative to Other

question 46

Multiple Choice

If a country has a high savings rate relative to other countries, then the

• A) Supply of loanable funds is larger, interest rates are lower, and net capital outflow is higher for that country than for others.
• B) Supply of loanable funds is smaller, interest rates are higher, and net capital outflow is lower for that country than for others.
• C) Demand for loanable funds is larger, interest rates are higher, and net capital outflow is lower for that country than for others.
• D) Government must subsidize production in order to encourage international trade.

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Definitions:

Calories

Units of energy that measure the amount of energy food provides to the body.

Fat

A macronutrient that is a major source of energy for the body and aids in the absorption of vitamins.

Immediate Fuel

Energy sources that are quickly available to the body for immediate use, such as glucose.

Carbohydrates

Organic compounds consisting of carbon, hydrogen, and oxygen, typically found in foods and living tissues, vital for energy supply in living organisms.