A Large Open Economy Has Desired National Saving of S^d

question 62

Multiple Choice

A large open economy has desired national saving of S^d = 1200 + 1000r^w,and desired national investment of I^d = 1000 - 500r^w.The foreign economy has desired national saving of = 1300 + 1000r^w,and desired national investment of = 1800 - 500r^w.Suppose the foreign country's government increases its spending by 300 and private saving does not change.Then in equilibrium,the foreign country has net exports equal to

• A)500.
• B)350.
• C)-350.
• D)-500.

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Definitions:

Maximum Penalty

The most severe punishment that can be imposed for a particular offence by a court of law.

Life Imprisonment

A sentence of imprisonment for a crime where the convicted person is to remain in prison for the rest of their life.

Serious Crime

A criminal offense that is considered severely harmful to individuals or society, typically involving violence or the threat of violence, and carrying heavy penalties.

Imprisonment

The act of confining someone in a prison as a legal punishment for committing a crime.