Based on the Saving-Investment Diagram, if the domestic real ...

[darbym82]

Based on the Saving-Investment Diagram, if the domestic real interest rate is indicated by B, then ________.
 
  A) the value of net exports is zero
  B) the diagram represents a closed economy
  C) the world real interest rate is indicated by A
  D) the difference between values F and E measures the net capital inflow
  E) none of the above

Question 2

Which of the following is the most likely explanation for the behavior of private inventories between September 2007 and September 2009, as depicted in Figure 19.1?
 
  A) a substantial decline in the desired level of inventories, due to a slump in aggregate demand
  B) a substantial decline in the desired level of inventories, as improvements in technology have reduced the size of inventories needed to support both production and customer deliveries
  C) an unanticipated draw-down of inventories as the economy was growing much faster than expected
  D) a substantial decline in the desired level of inventories, as changes in the tax code increased the cost of holding inventories

[mmpiza]

Answer to Question 1

A

Answer to Question 2

A

[darbym82]

Gracias!

[matt95]

Excellent