The saving rate (gross domestic saving as a % of GDP) in Australia, a small open economy, was 15% in 2011 while the investment rate (domestic investment as a % of GDP) was 25%. As a result, there was net outflow of capital from Australia in 2011. Start answer by selecting one of the options – “True”, “False” or “Uncertain” and then provide arguments to justify your selection. You need to ensure your assumptions are clear, reasonable and explicit if making any.
The saving rate (gross domestic saving as a % of GDP) in Australia, a small open economy, was 15% in 2011 while the investment rate (domestic investment as a % of GDP) was 25%. As a result, there was net outflow of capital from Australia in 2011. Start answer by selecting one of the options – “True”, “False” or “Uncertain” and then provide arguments to justify your selection. You need to ensure your assumptions are clear, reasonable and explicit if making any.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The saving rate (gross domestic saving as a % of
Start answer by selecting one of the options – “True”, “False” or “Uncertain” and then provide arguments to justify your selection. You need to ensure your assumptions are clear, reasonable and explicit if making any.
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