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

question 98

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,and output = 5000,then absorption equals

• A)5100.
• B)5050.
• C)4950.
• D)4900.

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