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In an Open Economy, If Domestic Citizens Decide to Save

question 88

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In an open economy, if domestic citizens decide to save more, then the domestic real interest rate will ________ and the level of capital investment in the country will ________, holding other factors constant.


Definitions:

Transition

The process or period of changing from one state or condition to another.

Indirect Format

A communication strategy that presents information in a roundabout manner, often used to soften the delivery of negative or sensitive information.

Buffer

A tool or app used for scheduling posts, analyzing the performance, and managing all social media accounts in one place.

Bad News

Unfavorable or distressing information that needs to be communicated to someone.

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