Consider a small open economy. Suppose there is an increase in the expected future marginal product of capital. Without other changes, we can expect that saving curve will shift to the left and the current account balance will decrease. saving curve will shift to the right and the current account balance will increase. investment curve will shift to the left and the current account balance will increase. investment curve will shift to the right and the current account balance will decrease.

Consider a small open economy. Suppose there is an increase in the expected future marginal product of capital. Without other changes, we can expect that saving curve will shift to the left and the current account balance will decrease. saving curve will shift to the right and the current account balance will increase. investment curve will shift to the left and the current account balance will increase. investment curve will shift to the right and the current account balance will decrease.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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