Consider a Small Open Economy with Desired National Saving of S^d

question 30

Multiple Choice

Consider a small open economy with desired national saving of S^d = 200 + 10,000r^w and desired investment of I^d = 1000 - 5000r^w.If r^w = 0.05,then net exports equal

• A)100.
• B)50.
• C)-50.
• D)-100.

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Definitions:

Interval Estimate

An interval of values, taken from data sampling, expected to capture the value of a not-yet-known population measure.

Population Parameter

A characteristic or measure that describes an aspect of a population.

Upper Bound

The highest possible value in a set of numbers or the maximum limit of a range.

Shuttle Bus

A bus service that travels frequently between two points, such as between an airport and a city center, designed to shuttle passengers in a short time.