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    Exam 12: Open-Economy Macroeconomics: Basic Concepts
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    Suppose That a Country Has $120 Billion of National Savings
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Suppose That a Country Has $120 Billion of National Savings

Question 25

Question 25

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Suppose that a country has $120 billion of national savings, and $80 billion of domestic investment. Is this possible? Where did the other $40 billion of national savings go?

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This is possible for an open economy. Th...

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