Author Question: In an open economy, private saving, , is equal to A) I - CA + (G - T). B) I + CA - (G - T). C) ... (Read 33 times)

mp14 · **on:** Jun 30, 2018

In an open economy, private saving, , is equal to

A) I - CA + (G - T).
B) I + CA - (G - T).
C) I + CA + (G - T).
D) I - CA - (G - T).
E) I + CA + (G + T).

Question 2

In the specific factor model, the effect of an increase in the productivity of labor in the production of cloth will cause a(an) ________ in the quantity of labor used to produce cloth, a(an) ________ in the quantity of labor used to produce food and

a(an) ________ in the wage rate. A) increase; decrease; increase
B) decrease; increase; increase
C) increase; decrease; decrease
D) decrease; increase; no change
E) increase; increase; no change