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.

---

Definitions:

Rubella

A contagious viral infection characterized by a red rash and fever, also known as German measles, particularly dangerous to pregnant women due to the risk of congenital rubella syndrome.

Vaccinated

The state of having received a vaccine, which stimulates the body's immune response against specific diseases for protection.

Rh Incompatibility

A condition that occurs during pregnancy if a mother's Rh blood type is negative and her baby's is positive, leading to potential health problems for the baby.

White Blood Cells

White blood cells are components of the blood that are crucial for the body's immune system, fighting infections and other foreign invaders.