Key points:a. Many
economist belive that business saving influences investment.
b. Also, good saving helps in reducing the interest rate on lending money repayment.
c. But facts are opposite; author provides some examples. There is some other factor which influences saving/investments. In fact, interest rate influences saving/investment.
-> Primarily, author talks about what many
economist feel and then provides some facts/examples to show they are wrong.
The passage is primarily concerned with
A. contrasting trends in two historical periods
B. presenting evidence that calls into question certain beliefsC. explaining the reasons for a common phenomenon
D. criticizing evidence offered in support of a well-respected belief
E. comparing conflicting interpretations of a theory
-"
Clearly, real interest rates respond to influences other than the savings/investment nexus. Indeed, real interest rates may themselves influence swings in the savings and investment rates."
According to the passage, which of the following resulted from foreign
investment in the United States after 1979?
A. An increase in real interest rates
B. A decrease in the savings rate of certain other nations
C. An increase in American investment abroad
D. An increase in the price of American goods abroadE. A decrease in the price of domestic goods sold at home
-"As real interest rates shot up after 1979, foreign investors poured capital into the United States,
the price of domestic goods increased prohibitively abroad, and the price of foreign-made goods became lower in the United States."
The author of the passage would be most likely to agree with which of the following
statements regarding the economists mentioned in line 1?
A. Their beliefs are contradicted by certain economic phenomena that occurred in the
United States during the 1960's and the 1980's.B. Their theory fails to predict under what circumstances the prices of foreign and domestic
goods are likely to increase.
C. They incorrectly identify the factors other than savings and investment rates that
affect real interest rates.
D. Their belief is valid only for the United States economy and not necessarily for other
national economies.
E. They overestimate the impact of the real interest rate on the national savings
and investment rates.
- This is the main idea.
Well, I've been sleeping for five hours on average last week, as only late night was when I really have time to sit down and do some studying. But I'm taking the next week off from work, so I would be able to sleep some more now. 
Thanks guys. 
