In a large open economy ________. A) the effect of shifts in saving a

In a large open economy ________.

A) the effect of shifts in saving and investment on the trade balance are in the same direction as in a closed economy
B) the effect of shifts in saving and investment on net capital flows are in the same direction as in a closed economy
C) the effect of shifts in saving and investment on the domestic real interest rate and the actual levels of saving and investment are in the same direction as in a closed economy
D) all of the above
E) none of the above

ANSWER

C