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Investment curve is downwards sloping

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Reference no: EM131726601

Consider an open economy, say the U.S., which is experiencing a trade deficit. a. Draw the graph of "Desired Savings" and "Desired Investment" for this country; be sure to clearly label the graph. Show the world interest rate, the equilibrium level of savings, and the equilibrium level of investment in the graph. Explain why the savings curve is upwards sloping and the investment curve is downwards sloping.

Reference no: EM131726601

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