Multiple Choice
In an open economy,
A) the goods market is in equilibrium when domestic saving equals domestic investment.
B) the domestic real interest rate will be below the world real interest rate.
C) the domestic real interest rate will be above the world real interest rate.
D) the goods market is in equilibrium when desired international lending equals desired international borrowing by other countries.
Correct Answer:
Verified
Correct Answer:
Verified
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