In a Large Open Economy ________

question 78

Multiple Choice

In a large open economy ________.

• A) the direction of the shifts in saving and investment on the trade balance are the same as in a closed economy
• B) the direction of the shifts in saving and investment on net capital flows are the same as in a closed economy
• C) the direction of the effect on the domestic real interest rate and the actual levels of saving and investment are the same as in a closed economy
• D) all of the above
• E) none of the above

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