Consider a small open economy with desired national saving of Sd = 200 + 10,000rw and desired investment of Id = 1000 - 5000rw. 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. 100.
D. -50.
Answer: A
Economics
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