Multiple Choice
If the world real interest rate were to fall below the rate at which domestic saving and investment would be equal ________.
A) saving would be greater than investment so the economy would be running a trade deficit
B) investment would be greater than saving so the economy would be running a trade deficit
C) investment would be greater than saving so the economy would be running a trade surplus
D) saving would be greater than investment so the economy would be running a trade surplus
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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