Use a diagram like Figure 15.9 to show the effects of each of the following on the

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Use a diagram like Figure 15.9 to show the effects of each of the following on the real interest rate and capital investment of a country that is a net borrower from abroad. (LO4)

a. Investment opportunities in the country improve owing to new technologies.

b. The government budget deficit rises.

c. Domestic citizens decide to save more.

d. Foreign investors believe that the riskiness of lending to the country has increased.

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Principles Of Macroeconomics

ISBN: 9781259414367

6th Edition

Authors: Robert Frank, Ben Bernanke, Kate Antonovics

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