The introduction of new technologies:Group of answer choicesincreases the real interest rate and does not change the equilibrium quantity of national savingincreases the real interest rate and increases the equilibrium quantity of national savingincreases the real interest rate and decreases the equilibrium quantity of national savingdecreases the real interest rate and increases the equilibrium quantity of national saving

The benefit of saving is the:Group of answer choicesreal interest ratenominal interest rateinflation ratesaving rate

In the classical model of a closed economy, which of the following best describes the effect of an increase in the real interest rate on national savings and investment, assuming the economy is initially in equilibrium?

In a closed economy with no government, the level of national saving is equal to the level of investment.Group of answer choicesTrueFalse

Consider a small open economy that takes the world real interest rate as given. Suppose that initially the world real interest rate is less than the country’s autarky real interest rate. Now suppose there is a change in tax policy that leads to an increase in domestic saving supply. Which of the following is TRUE?Group of answer choicesThe economy may flip from importing capital to exporting capitalThere is an increase in the quantity of domestic investmentThere is an increase in the real interest rate paid to domestic saversNone of the other options

If private domestic saving and investment remain constant, an increase in the government budget deficit will Group of answer choicesreduce net exportsreduce national savingincrease net capital inflowsall of the other answers