Consider a small open economy with desired national saving of S(d)= 200 + 10,000r and desired investment of I(d) = 1,000 - 5,000r. If r = 0.05, then net exports equal
a. -100.
b. -50.
c. 50.
d. 100.
Answer: B
Consider a small open economy with desired national saving of S(d)= 200 + 10,000r and desired investment of I(d) = 1,000 - 5,000r. If r = 0.05, then net exports equal
a. -100.
b. -50.
c. 50.
d. 100.
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