Based on the Saving-Investment Diagram, if the difference between ...

[javeds]

Based on the Saving-Investment Diagram, if the difference between values G and E measures the net capital outflow, then ________.
 
  A) the difference between values G and E measures the trade surplus
  B) the difference between values H and D measures the trade surplus
  C) the domestic real interest rate is indicated by B
  D) desired saving has decreased
  E) none of the above

Question 2

Predicting business cycles is difficult because
 
  A) they are very persistent.
  B) the weather changes unpredictably.
  C) statistics lie.
  D) their frequency is irregular.

[kthug]

Answer to Question 1

A

Answer to Question 2

D