Exam 4: Saving and Investment in Closed and Open Economies

Saving-Investment Diagram -Based on the Saving-Investment Diagram,if the difference between values G and E measures the net capital outflow,then ________.

How does a decline in the real interest rate cause an increase in investment?

Suppose GDP is $800 billion,net taxes equal $150 billion,government purchases are $160 billion,investment is $120 billion,and net exports are $5 billion.The private saving rate is ________.

In the model of the open economy with perfect capital mobility,________ is an exogenous variable.

A small open economy would typically enjoy a higher trade balance if,in the domestic economy,________.