For a small open economy, a decrease in the world interest rate will cause a. a decrease in national savings. If the price of oil rose temporarily, then the current account of an OPEC nation would likely a. fall. An improvement in technology will cause the current account to rise. True b. False 4.
Gross investment is a. the total purchase of bonds in a given period.
None of the above 5. An increase in the marginal product of capital. An increase in the interest rate. An increase in the depreciation rate. All the above 6.