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Consider a Small Open Economy with Desired National Saving of Sd

Question 98

Multiple Choice

Consider a small open economy with desired national saving of Sd = 200 + 10,000rw and desired investment of Id = 1000 - 5000rw.If rw = 0.05,and output = 5000,then absorption equals


A) 5100.
B) 5050.
C) 4950.
D) 4900.

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