Multiple Choice
In a small open economy in equilibrium:
A) saving is fixed, and investment is determined by the investment function and the world interest rate.
B) investment is fixed, and saving is determined by the saving function and the world interest rate.
C) saving is fixed, and investment is determined by the trade balance.
D) investment is fixed, and saving is determined by the trade balance.
Correct Answer:
Verified
Correct Answer:
Verified
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