Based on the Saving-Investment Diagram, if the domestic real interest

Based on the Saving-Investment Diagram, if the domestic real interest rate is indicated by B, then ________.

A) the value of net exports is zero
B) the diagram represents a closed economy
C) the world real interest rate is indicated by A
D) the difference between values F and E measures the net capital inflow
E) none of the above

 

ANSWER

A

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