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: Sd = 200 + 700rw and Id = 300 - 200rw.The foreign country's saving and investment equations are: Sd = 50 + 300rw and Id = 75 - 50rw.In equilibrium,the world real interest rate =

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