Business, 27.11.2019 21:31, jeftegerman988

Suppose that americans decide to increase their saving. as a result, the real interest rate will , and u. s. net capital outflow will . if the elasticity of u. s. net capital outflow with respect to the real interest rate is very low, this increase in private saving will have a effect on u. s. domestic investment. if the elasticity of u. s. exports with respect to the real exchange rate is very high, this increase in private saving will have a effect on the u. s. real exchange rate.

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