At the equilibrium real interest rate in the open-economy macroeconomic model,
A)saving = domestic investment.
B)saving = net capital outflow.
C)net capital outflow = domestic investment.
D)net capital outflow + domestic investment = saving.

Question

Quizplus · Accepted Answer

In an open-economy macroeconomic model, at equilibrium, saving equals the sum of domestic investment and net capital outflow. This reflects the balance between the funds available for investment domestically and abroad.

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