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Large or small effect in domestic investment

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Reference no: EM132481990

Suppose that you countrymen decide to increase their saving. If the elasticity of net capital outflow with respect to the real interest rate is very high, will this increase in private saving have a large or small effect in domestic investment?Suppose that you countrymen decide to increase their saving. If the elasticity of net capital outflow with respect to the real interest rate is very high, will this increase in private saving have a large or small effect in domestic investment?

Reference no: EM132481990

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