1). Which of the following is true: (1). Interest rate differentials affect savings and investments, while...

 

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1). Which of the following is true: (1). Interest rate differentials affect savings and investments, while inflation differentials affect trade (2). Interest rate differentials affect trade, while inflation differentials affect savings and investments (3). Interest rate differentials affect savings and investments, while inflation differentials affect the balance of payments 1 and 2 are only true only 1 is true All is true 2 and 3 are only true 1). Which of the following is true: (1). Interest rate differentials affect savings and investments, while inflation differentials affect trade (2). Interest rate differentials affect trade, while inflation differentials affect savings and investments (3). Interest rate differentials affect savings and investments, while inflation differentials affect the balance of payments 1 and 2 are only true only 1 is true All is true 2 and 3 are only true

Answer rating: 100% (QA)

Explanation Interest rate differentials and inflation differentials are two important economic concepts that influence savings and investments trade and the balance of payments Interest rate differentials refer to the difference in interest rates between two countries or between different ... View the full answer