In an Open Economy,an Increase in Saving Might Not Cause

question 45

Essay

In an open economy,an increase in saving might not cause an increase in domestic investment.Why not? Does that mean that an increase in saving is undesirable?

Comprehend how affiliation and attraction contribute to group bonding.

Explain the role of social comparison in group dynamics.

Identify personality traits that predict group joining behavior.

Understand the basic human needs satisfied by group membership.

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Definitions:

Cov(X,Y)

The covariance between two variables X and Y, measuring how changes in one variable are associated with changes in the other.

Sample Slope Coefficient

A parameter in a linear regression equation that represents the change in the dependent variable for a one-unit change in the independent variable.

Residual

The difference between the observed and the predicted value in a regression model.

Actual Value

The true or factual value of a variable or quantity, without estimation or error.