This topic contains a solution. Click here to go to the answer

Author Question: If the world real interest rate were to fall below the rate at which domestic saving and investment ... (Read 92 times)

Arii_bell

  • Hero Member
  • *****
  • Posts: 596
If the world real interest rate were to fall below the rate at which domestic saving and investment would be equal ________.
 
  A) saving would be greater than investment so the economy would be running a trade deficit
  B) investment would be greater than saving so the economy would be running a trade deficit
  C) investment would be greater than saving so the economy would be running a trade surplus
  D) saving would be greater than investment so the economy would be running a trade surplus
  E) none of the above

Question 2

When current account deficits are used to finance investment spending, such deficits may be self-correcting because
 
  A) they promote more responsible government policies.
  B) the resulting increase in the capital stock over time shifts the output supply curve to the right.
  C) the resulting increase in the capital stock over time shifts the output demand curve to the right.
  D) the resulting increase in national indebtedness increases labor demand.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mcabuhat

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

B

Answer to Question 2

B




Arii_bell

  • Member
  • Posts: 596
Reply 2 on: Jun 30, 2018
Wow, this really help


upturnedfurball

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

For a complete list of videos, visit our video library