In a Small Open Economy, If Domestic Saving Equals $50

question 110

Multiple Choice

In a small open economy, if domestic saving equals $50 billion and domestic investment equals $50 billion, then there is ______ and net capital outflow equals ______.

• A) a trade deficit; $100 billion
• B) balanced trade; $0
• C) a trade surplus; $100 billion
• D) balanced trade; $100 billion

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