In an open economy, if domestic citizens decide to save more, then the domestic real interest rate will level of capital investment in the country will. _, holding other factors constant. and the a. decrease; decrease b. increase; increase c. increase; decrease d. decrease; increase

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
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In an open economy, if domestic citizens decide to save more, then the domestic real interest rate will
level of capital investment in the country will. _, holding other factors constant.
and the
a.
decrease; decrease
b. increase; increase
c. increase; decrease
d. decrease; increase
Transcribed Image Text:In an open economy, if domestic citizens decide to save more, then the domestic real interest rate will level of capital investment in the country will. _, holding other factors constant. and the a. decrease; decrease b. increase; increase c. increase; decrease d. decrease; increase
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