Business, 19.10.2019 00:20 Jeyson5852

Suppose that in country a, a small open economy, there is a positive shock to the propensity of consumers to save: for the same world real interest rate, all of a sudden people are willing to save more.
if the world real interest rate is

the current account balance of country a will improve

the current account balance of country a will deteriorate

the current account balance of country a will deteriorate if it's running a surplus, improve if it's running a deficit

the current account balance of country a will improve if it's running a surplus, deteriorate if it's running a deficit

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Suppose that in country a, a small open economy, there is a positive shock to the propensity of cons...

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