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BADM 7200 MODULE 3 HOMEWORK ASSIGNMENT CHAPTERS 6 & 7 | QUESTIONS AND ANSWERS | 2026 UPDATE | WITH COMPLETE SOLUTIONS RATED 100% CORRECT.

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BADM 7200 MODULE 3 HOMEWORK ASSIGNMENT CHAPTERS 6 & 7 | QUESTIONS AND ANSWERS | 2026 UPDATE | WITH COMPLETE SOLUTIONS RATED 100% CORRECT.

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BADM 7200 MODULE 3 HOMEWORK ASIGNMENT CHAPTERS 6
Course
BADM 7200 MODULE 3 HOMEWORK ASIGNMENT CHAPTERS 6

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,
, BADM 7200 MODULE 3 HOMEWORK
ASSIGNMENT CHAPTERS 6 & 7 |
QUESTIONS AND ANSWERS | 2026
UPDATE | WITH COMPLETE SOLUTIONS
RATED 100% CORRECT.



SECTION 1: LARGE OPEN ECONOMY – SAVING &
INVESTMENT (Questions 1-10)

Question 1
In a large open economy, the interest rate adjusts so that domestic
saving equals:

A) Domestic investment plus net capital outflow
B) Net capital outflow
C) Domestic investment
D) Net exports

Correct Answer: A) Domestic investment plus net capital outflow

Rationale: In a large open economy, the loanable funds market equilibrium
condition is S = I(r) + CF(r) . National saving is allocated to domestic
investment and net capital outflow. This contrasts with a closed economy (S
= I) and a small open economy (r = r*, S - I = CF).




Question 2
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  • badm 7200 homework assignment chapters 6
  • module 3 homework assignment chapters 6
  • badm 7200 module 3 homework assignment chapters 6
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