In Comparison with a Closed Economy, in a Large Open

question 58

Multiple Choice

In comparison with a closed economy, in a large open economy

• A)an increase in desired saving will cause a larger decline in the domestic real interest rate.
• B)the IS curve will be steeper.
• C)an increase in desired investment will cause a smaller increase in the domestic real interest rate.
• D)the IS curve will be horizontal at the world real interest rate.

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Definitions:

Passive Listening

The act of hearing someone speak without actively engaging in the communication process.

Reflecting Back

A communication technique used to confirm understanding or to clarify what another person has said by paraphrasing their statements.

Nonverbal Cues

Communications expressed through body language, facial expressions, gestures, and other physical behaviors rather than spoken words.

Verbal Cues

Non-content aspects of spoken language such as tone, pace, and volume that communicate information or suggest meaning.