When There Are Two Large Open Economies,if Desired International Lending

question 76

Multiple Choice

When there are two large open economies,if desired international lending by the domestic country exceeds desired international borrowing by the foreign country,then

• A)domestic saving must rise.
• B)domestic saving must fall.
• C)the world real interest rate must fall.
• D)the world real interest rate must rise.

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Definitions:

Jean Piaget

A psychologist from Switzerland renowned for his groundbreaking contributions to the study of child development, especially his cognitive development theory.

Paul Ekman

A psychologist renowned for his research on the classification of human emotions and their expression through facial expressions.

Median

The middle value in a data set, which divides the set into two equal halves.

Mode

describes the value that appears most frequently in a data set.