Empirically,there Is a Close Positive Relationship Between Domestic Savings and Investment.This

question 20

Multiple Choice

Empirically,there is a close positive relationship between domestic savings and investment.This is consistent with what we should expect to observe in

• A)a closed economy.
• B)the Mundell-Flemming model with perfect capital mobility.
• C)the Mundell-Flemming model with perfect capital mobility and flexible exchange rates.
• D)the Mundell-Flemming model with perfect capital mobility and fixed exchange rates.
• E)none of the above.

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