In an economy open to international trade where the interest rate at w

In an economy open to international trade where the interest rate at which saving and investment would be equal is ________ the world real interest rate ________.

A) above; a trade surplus ensues
B) below; a trade deficit ensues
C) above; there is a net capital outflow
D) below; there is a net capital inflow
E) none of the above

ANSWER

E