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7 Cards in this Set
- Front
- Back
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Equation S - NX = I is equal to? |
S + KI = I |
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Benefits of net capital inflows to a country include all the following except? |
Interest and divident payments owed to foreign investors |
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If domestic saving is less than domestic, investment, then a country will have a ___ and positive net capital ____ |
trade deficit, inflows |
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If domestic saving is greater than domestic, investment, then a country will have a ___ and positive net capital ____ |
trade surplus, outflow |
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the sum of national saving and capital inflows from abroad must equal |
domestic investment in new capital goods |
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Which of thefollowing events will decrease the domestic real interest rate in an openeconomy? |
an increase in domestic saving |
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In an open economy,if domestic citizens decide to save more, then the domestic real interest ratewill ______ and the level of capital investment in the country will _____,holding other factors constant. |
decrease, increase |
