In a Large Open Economy,the Home Country's Saving and Investment

question 107

Multiple Choice

In a large open economy,the home country's saving and investment equations are: Sd = 200 + 700rw and Id = 300 - 200rw.The foreign country's saving and investment equations are: Sd = 50 + 300rw and Id = 75 - 50rw.In equilibrium,the world real interest rate =

• A)0)10.
• B)0)20.
• C)0)25.
• D)0)40.

---

Definitions:

Positive Reinforcer

A stimulus that increases the probability of a behavior being repeated by providing a rewarding outcome.

Punishment

A consequence that follows an undesirable behavior, with the intent of reducing or eliminating that behavior.

Reinforcers

Stimuli, events, or conditions that increase the likelihood of a behavior being repeated.

Self-Modification Program

A self-directed plan designed to change one's behavior or habits through a structured process of self-observation, goal-setting, and reinforcement.