Global Trade
This is the exchange of goods and services across international borders - international/global trade typically represents a large portion of a country's GDP.
Answer:
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Explanation:
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Explanation:
Answer:
d. encourages both U.S. and foreign residents to buy U.S. assets.
Explanation:
The interest rate in a country has influence on the capital of it.
When the real interest rates in the United States increase, the U.S. assets have higher value so that become attractive to funds. Thus, it encourages both foreign and U.S. residents to buy U.S. assets.
Besides, when the real interest rate in the U.S. increases, it encourages the U.S residents to save more U.S. assets and discourage them from purchasing foreign assets
=> The net capital inflow in U.S would increase
Answer: 0.70; 0.30
Explanation:
Marginal propensity to consume(MPC) is the additional spending by an economic agent due to a rise in income while the marginal propensity to save is the additional saving by someone due to rise in income.
Increase in income = $3,000
Increase in spending = $2,100
Increase in savings = $3,000 - $2,100 = $900
MPC = $2,100/$3,000
= 0.70
MPS = $900/$3,000
= 0.30