A Small Country Is a Net Foreign Borrower and Its

question 224

Multiple Choice

A small country is a net foreign borrower and its demand for loanable funds increases. As a result, the equilibrium quantity of loanable funds used in the country _ and the country's foreign borrowing .

• A) increases; does not change
• B) does not change; increases
• C) does not change; does not change
• D) increases; increases

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Definitions:

Service Organization

A business or entity that provides services as opposed to goods, focusing on meeting the needs of its customers.

Location Analysis Technique

A systematic approach used to determine the most optimal location for a business or facility, considering factors like cost, accessibility, and market demand.

Determinants of Revenue

Various factors or elements that influence the total income generated from the sale of goods or services by a company or organization.