Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving, domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar. Assume that the economy is currently experiencing a balanced government budget. Real Interest Rate (Percent) 7 6 5 4 3 2 National Saving (Billions of dollars) 50 45 40 35 30 25 Domestic Investment (Billions of dollars) 20 30 40 50 60 70 Net Capital Outflow (Billions of dollars) -10 -5 0 5 10 15
Consider a hypothetical open economy. The following table presents data on the relationship between various real interest rates and national saving, domestic investment, and net capital outflow in this economy, where the currency is the U.S. dollar. Assume that the economy is currently experiencing a balanced government budget. Real Interest Rate (Percent) 7 6 5 4 3 2 National Saving (Billions of dollars) 50 45 40 35 30 25 Domestic Investment (Billions of dollars) 20 30 40 50 60 70 Net Capital Outflow (Billions of dollars) -10 -5 0 5 10 15
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Savings,investment And The Financial System
Section: Chapter Questions
Problem 4PA
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