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AP Macroeconomics Mkt 4 B Define National Savings in Both a Closed and an Open Economy Questions

Relate private and public saving to national saving, then include net capital inflow when analysing investment funding in an open economy.

Syllabus
Effective Fall 2022
Course
AP Macroeconomics

Exam points

  • infer how budget balances and net capital inflows change investment funding and long-run growth

AP Macroeconomics Mkt 4 B Define National Savings in Both a Closed and an Open Economy Questions question 1

[Maximum number: 1]

Assume that the economy of Moneyland is in equilibrium with an actual unemployment rate equal to the natural rate of unemployment.

How would the change in the policy rate shown on your graph in part (e) affect each of the following in Moneyland in the short run?

The quantity of national savings

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