At the equilibrium real interest rate in the open-economy macroeconomic model,the amount that people want to save equals the desired quantity of
A)net capital outflow.
B)domestic investment.
C)net capital outflow plus domestic investment.
D)foreign currency supplied.

Question

Quizplus · Accepted Answer

At equilibrium, savings in an open economy equals the sum of net capital outflow and domestic investment, as savings can be used for both domestic investment and investment abroad.

At the Equilibrium Real Interest Rate in the Open-Economy Macroeconomic