In a Saving-Investment Diagram for a Small Open Economy

question 17

Multiple Choice

In a saving-investment diagram for a small open economy

• A)the saving curve is vertical at some fixed level of output.
• B)the saving curve is horizontal at some fixed interest rate.
• C)the real interest rate is fixed at the world real interest rate.
• D)equilibrium requires that S^d = I^d.

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Definitions:

Median

The middle value in a data set, which divides the data into two halves with an equal number of observations above and below it.

Mean

The average value of a set of numbers, calculated by dividing the sum of all the values by the number of values.

Mode

The most common number found within a given collection of data.

Frequency Distributions

A summary of data showing the number of observations in each of several non-overlapping categories or bins.