Multiple Choice
Consider a small open economy with desired national saving of Sd = 200 + 10,000rw and desired investment of Id = 1,000 - 5,000rw.If rw = 0.05,then a rise in government spending of 50 with no change in private saving causes net exports to become
A) 100.
B) 50.
C) -50.
D) -100.
Correct Answer:
Verified
Correct Answer:
Verified
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