Suppose the World Economy Is Divided into Two Halves

question 70

Multiple Choice

Suppose the world economy is divided into two halves.In Region A,all economies experience a decrease in desired saving,while desired saving is unchanged in Region B.If there is open trade and perfect capital mobility across the two regions,which of the following is true?

• A)Actual saving in Region B has increased.
• B)Actual investment in Region A has increased.
• C)Region A's imports from Region B have decreased.
• D)all of the above
• E)none of the above

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Definitions:

Orally

Pertaining to the mouth; taken through or affecting the mouth, as in oral medication.

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An intensive care unit specializing in the care of ill or premature newborn infants.

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The number of heartbeats per unit of time, typically measured in beats per minute (bpm).

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The sequence of events in the heart from one heartbeat to the next, including systole and diastole.