In Open Economies

question 41

Multiple Choice

In open economies

• A) saving and investment are necessarily equal.
• B) as in a closed economy, saving and investment are not necessarily equal.
• C) saving and investment are not necessarily equal as they are in a closed economy.
• D) saving and investment are necessarily equal contrary to the case of a closed economy.
• E) investment always refers to the domestic stock market.

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Definitions:

Absolute Value

In mathematics, the distance of a number on the number line from zero, without considering direction; it's always a positive value.

Slope

The slope is the measure of the steepness or incline of a line, typically described as the ratio of the rise over the run between two points on the line.

Isocost Line

A line that represents all combinations of inputs which have the same total cost.

Capital

Wealth in the form of money or other assets owned by a person or organization or available for purposes such as starting a company or investing.