A large open economy has desired national saving of Sd = 1200 + 1000 rw, and desired national investment of Id = 1000 - 500 rw. The foreign economy has desired national saving of Sdfor = 1300 + 1000 rw, and desired national investment of Idfor= 1800 - 500 rw. The equilibrium world real interest rate equals a. 0.05. b. 0.10. c. 0.15. d. 0.20

A large open economy has desired national saving of Sd = 1200 + 1000 rw, and desired national investment of Id = 1000 - 500 rw. The foreign economy has desired national saving of Sdfor = 1300 + 1000 rw, and desired national investment of Idfor= 1800 - 500 rw. The equilibrium world real interest rate equals a. 0.05. b. 0.10. c. 0.15. d. 0.20

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Open-economy Macroeconomics: Basic Concepts

Section: Chapter Questions

Problem 2CQQ

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