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Empirically,there Is a Close Positive Relationship Between Domestic Savings and Investment.This

Question 20

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Empirically,there is a close positive relationship between domestic savings and investment.This is consistent with what we should expect to observe in


A) a closed economy.
B) the Mundell-Flemming model with perfect capital mobility.
C) the Mundell-Flemming model with perfect capital mobility and flexible exchange rates.
D) the Mundell-Flemming model with perfect capital mobility and fixed exchange rates.
E) none of the above.

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