Multiple Choice
A large open economy has desired national saving of Sd = 1200 + 1000rw,and desired national investment of Id = 1000 - 500rw.The foreign economy has desired national saving of 
= 1300 + 1000rw,and desired national investment of 
= 1800 - 500rw.Suppose the foreign country's government increases its spending by 300 and private saving does not change.Then in equilibrium,the foreign country has net exports equal to
A) 500.
B) 350.
C) -350.
D) -500.
Correct Answer:
Verified
Correct Answer:
Verified
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