In the open-economy macroeconomic model, the
a. exchange rate adjusts to equate private saving with the sum of investment, net exports, and net capital outflow.
b. exchange rate adjusts to equate national saving with the sum of investment and net capital outflow.
c. interest rate adjusts to equate private saving with the sum of investment, net exports, and net capital outflow.
d. interest rate adjusts to equate national saving with the sum of investment and net capital outflow.
d
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Althea, a brilliant new Ph.D. in economics, has turned down many job offers because she hopes eventually to teach at one of the top 10 universities in her field. The type of unemployment she is experiencing is:
a. frictional. b. structural. c. seasonal. d. cyclical. e. underemployment.
If a firm has a capital stock of $50,000 and employs 200 workers, its capital-labor ratio is
a. $1/250 b. 4 percent c. 250 percent d. $10,000,000 e. $250
All of the following shift the LAS curve EXCEPT
A) a change in the capital stock. B) an increase in the money wage rate. C) an increase in the stock of human capital. D) technological progress.
Sanjay has an ATV that he values at $3,000. Marilu is looking for a similar ATV but will only pay up to $2,400
Will trade between these two occur? Is there a policy government could implement that would encourage a trade to occur between Sanjay and Marilu? If so, what is that policy and will the policy make society richer?