When there are two large open economies in the world, if desired international borrowing by the foreign country exceeds desired international lending by the home country, then foreign investment must rise. the world real interest rate must fall. foreign saving must fall. the world real interest rate must rise.

When there are two large open economies in the world, if desired international borrowing by the foreign country exceeds desired international lending by the home country, then foreign investment must rise. the world real interest rate must fall. foreign saving must fall. the world real interest rate must rise.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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