A Small Country Is a Net Foreign Lender and Its

question 7

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

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Definitions:

Honest

Characterized by truthfulness, integrity, and straightforwardness in actions and statements.

Different Parts

This refers to the various components or sections that make up a whole; in a system or machine, it refers to the distinct elements that perform specific functions.

Self-Determination Theory

The idea that people function best when they feel that their actions stem from their own desires rather than from external forces.

Intrinsic Motivation

The drive to engage in an activity for its own sake and the personal gratification it brings, rather than for some external reward.