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Figure 33-3 Refer to the following diagram of the open-economy macroeconomic model to answer the questions that follow. Graph (a) Graph (b) Panel a shows
Figure 33-3 Refer to the following diagram of the open-economy macroeconomic model to answer the questions that follow. Graph (a) Graph (b) Panel a shows a graph of a straight line, decreasing linearly, and a second straight line, increasing linearly. The following values are marked on the vertical axis, from lowest to highest. 3%, 4%, and 5%. 4% is on level with the point of intersection, or equilibrium point, of the two lines. 3% lies below the equilibrium point, and 5% lies above the equilibrium point. Panel b shows a graph of a straight line, decreasing linearly. Graph (c) Panel c shows a graph of a straight line, decreasing linearly, and a vertical line that extends from the horizontal axis. The vertical line intersects the decreasing line somewhere to the right of its middle point. Refer to Figure 33-3 . National saving is represented by the a. supply curve in graph (c). b. supply curve in graph (a). c. demand curve in graph (c). d. demand curve in graph (a)
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