The open-economy macroeconomic model includesa. only the market for loanable funds.b. only the market for foreign-currency exchange.c. both the market for loanable funds and the market for foreign-currency exchange.d. neither the market for loanable funds or the market for foreign-currency exchange.

In general, foreign entities:   a.  are borrowers of domestic (U.S.) loanable funds.   b.  require a greater inflation premium than domestic borrowers.   c.  are not concerned about the U.S. interest rate compared to their own, since it is illegal for them to lend in the United States.   d.  are lenders in the domestic (U.S.) loanable funds.   e.  require a smaller inflation premium than domes tic borrowers.

Which of the following statements are correct? state which ones are definitely incorrect and why.   a. Capital grows when investment is higher than depreciation b. The growth rate of capital increases when investment is higher than depreciation c. For a given rate of depreciation of capital, a rise in the ratio of investment to capital will raise the growth rate of capital d. There are no rich countries wth low investment ratios, and no poor countries with high investment ratios e. A country can only invest more than it saves if it borrows from abroad. f. The scatter diagram of capital output ratios vs investment rates does not show a perfect correlation. Therefore there is something wrong with the model of the way capital grows g. A country that increases its saving rate will be able to have more rapid growth of capital for as long as it maintains this higher savig rate h. A country that increases its saving rate will be able to have more rapid…

country has domestic investment of $200 billion. Its citizens purchase $600 billion of foreign assets and foreign citizens purchase $300 billion of its assets. What is national saving? a. $500 billion b. $400 billion c. $800 billion d. $600 billtion