Empirically, there is a close positive relationship between domestic s
Empirically, there is a close positive relationship between domestic savings and investment. This is consistent with what we should expect to observe in
a. a closed economy.
b. the Mundell-Flemming model with perfect capital mobility.
c. the Mundell-Flemming model with perfect capital mobility and flexible exchange rates.
d. the Mundell-Flemming model with perfect capital mobility and fixed exchange rates.
e. none of the above.
ANSWER
A
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