In a Large Open Economy,the Home Country's Saving and Investment

Multiple Choice

In a large open economy,the home country's saving and investment equations are: S^d = 200 + 700r^w and I^d = 300 - 200r^w.The foreign country's saving and investment equations are: S^d = 50 + 300r^w and I^d = 75 - 50r^w.In equilibrium,the world real interest rate =

A) 0) 10.
B) 0) 20.
C) 0) 25.
D) 0) 40.