In the national savings and investment identity framework, an inflow of savings from abroad is, by definition, equal to _______.
a. private sector investment
b. the trade surplus
c. the trade deficit
d. domestic household savings
c. the trade deficit
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Long-lived goods used to produce other goods and services are called:
A. human capital. B. inventories. C. financial capital. D. physical capital.
Many rapidly developing countries in East Asia have pursued government policies, which encourage savings. According to the neoclassical growth model, if these policies stimulate savings but do not encourage technology growth, then these policies
a. will have no effect on the level of output. b. will increase output growth permanently. c. will increase output growth in the short-run, but not in the long-run. d. will have no effect on the growth of output in the short-run or the long-run. e. none of the above.
In the loanable funds market, the price that borrowers must pay for earlier availability is the
a. inflation rate. b. wage rate. c. interest rate. d. exchange rate.
The ________ interest rate equals the ________ interest rate minus ________.
What will be an ideal response?