In an open economy, if the level of net exports rises, it must be the case that a) there is an increase in saving. b) there is an increase in investment. c) the value of saving less investment must fall. d) none of the above. Why the correct answer is D?
In an open economy, if the level of net exports rises, it must be the case that a) there is an increase in saving. b) there is an increase in investment. c) the value of saving less investment must fall. d) none of the above. Why the correct answer is D?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In an open economy, if the level of net exports rises, it must be the case that
a) there is an increase in saving.
b) there is an increase in investment.
c) the value of saving less investment must fall.
d) none of the above.
Why the correct answer is D?
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