Author Question: Discuss the values of private saving in closed and open economies. What will be an ideal ... (Read 128 times)

sam.t96 · **on:** Jun 30, 2018

Discuss the values of private saving in closed and open economies.

What will be an ideal response?

Question 2

Foreign exchange activity is dominated by the spot and swaps markets.

Indicate whether the statement is true or false

Joy Chen · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

In a closed economy, private saving, , is equals to, I + (G - T). In a open economy, private saving, , is equals to I + CA + (G - T). Open economy helps in extending the opportunities for private saving or dis-saving, or borrowing.

Answer to Question 2

TRUE