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
Question 2
To assure a well-defined solution to the consumers' intertemporal choice problems, we must assume that consumers' preferences exhibit the properties that
A) consumers are all identical and that more is always preferred to less.
B) more is preferred to less and that consumers prefer diversity.
C) consumers like diversity and that more is sometimes preferred to less.
D) more is sometimes preferred to less and that first-period consumption and second-period consumption are both normal goods.
Chloroplasts Feed the World
Smallest Hamster in the World
Major trunk lines carrying long-distance traffic crisscrossed the area east of the Mississippi. The
Region’s Culture in International Context
New World - Canada
Anatomy of the Spinal Cord: Cross Section Through the Spinal Cord in the Cervical Region