In a Large Open Economy, an Increase in Productivity Will

question 65

Multiple Choice

In a large open economy, an increase in productivity will lead in the long run to

• A)an increase in the real interest rate.
• B)an increase in the current account balance.
• C)an increase in the price level.
• D)a decrease in investment spending.

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Definitions:

Coronoid Process

A protruding structure on the upper jaw bone or on the ulna at the elbow, serving as an attachment point for muscles.

Intertubercular Sulcus

A groove on the humerus bone that houses the tendon of the biceps brachii muscle.

Humerus

The long bone in the upper arm, running from the shoulder to the elbow.

Proximal Row

Refers to the row of carpal bones in the wrist closest to the forearm, including the scaphoid, lunate, triquetrum, and pisiform bones.