AP Macroeconomics 4.7: National Savings
Define national savings in closed and open economies and connect public saving, private saving, investment, and net capital inflows.
- Syllabus
- Effective Fall 2025
- Course
- AP Macroeconomics
MKT-4.B—Define national savings in both a closed and an open economy 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
(f)
For the first point, state that the quantity of national savings would decrease and the unemployment rate would decrease.
1 point
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