China Is a Large Open Economy with an Extraordinarily High

question 56

Essay

China is a large open economy with an extraordinarily high saving rate.If,as seems likely,there is a decrease in desired saving in the coming years,what effects should we expect to see on China's trade balance (net capital flow),domestic real interest rate,and actual levels of saving and investment?

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Definitions:

Brachial Artery

A major blood vessel of the upper arm, responsible for supplying oxygenated blood to the arm and hand.

Radial Artery

A major artery in the forearm that supplies blood to the lateral aspect of the hand and is commonly used for checking the pulse.

Deep Femoral Artery

A large branch of the femoral artery that supplies blood to the deep structures of the thigh.

Pulmonary Vein

A large blood vessel that carries oxygenated blood from the lungs to the left atrium of the heart.