A Small Country Is a Net Foreign Lender and Its

question 134

Multiple Choice

A small country is a net foreign lender and its supply of loanable funds increases. As a result, the equilibrium quantity of loanable funds used in the country and the country's foreign lending .

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

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Definitions:

General Partner

A type of partner in a partnership who is responsible for the day-to-day management of the partnership and is personally liable for the partnership's debts.

Misapplication Funds

Refers to the wrongful use or allocation of funds that were intended for a specific purpose.

Partnership Relationship

The legal and operational relationship existing between partners in a business venture, governed by a partnership agreement.

Obligations

Duties or responsibilities imposed by law, contract, or social norms.