An open economy with a low saving rate (private and public) must have
A) low investment only.
B) high investment only.
C) a trade surplus only.
D) low investment or a trade deficit.
E) low investment or a trade surplus.
Question 2
Which of the following does not explain the relatively low price inflation compared to the higher wage inflation in the U.S. during the 1990s?
A) the appreciation of the dollar
B) a reduction in benefits paid to workers
C) an increase in the natural rate of unemployment
D) a reduction in the price of oil
Effects of growth rate on development.
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