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. -350.
B. 500.
C. -500.
D. 350.
Answer: C
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