1. Suppose that Americans decide to increase their saving. As a result, the real interest rate will (Rise/Fall) , and U.S. net capital outflow will (Increase/Decrease) .
2. If the elasticity of U.S. net capital outflow with respect to the real interest rate is very low, this increase in private saving will have a (Large/Small) effect on U.S. domestic investment.
3. If the elasticity of U.S. exports with respect to the real exchange rate is very high, this increase in...