Holding other things constant, an increase in anation’s interest rate reducesa. national saving and domestic investment.b. national saving and the net capital outflow.c. domestic investment and the net capital outflow.d. national saving only

Holding other things constant, an increase in anation’s interest rate reducesa. national saving and domestic investment.b. national saving and the net capital outflow.c. domestic investment and the net capital outflow.d. national saving only

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: A Macroeconomic Theory Of The Open Economy

Section: Chapter Questions

Problem 1CQQ

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Question

Holding other things constant, an increase in a
nation’s interest rate reduces
a. national saving and domestic investment.
b. national saving and the net capital outflow.
c. domestic investment and the net capital outflow.
d. national saving only

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