Two Nations Are Located Next to One Another

question 4

Multiple Choice

Two nations are located next to one another.In Nation A,people are very thrifty and spend much less than their incomes; moreover,Nation A's government runs a balanced budget every year.In Nation B,people spend all of their incomes,but their government runs consistent deficits.Thus,

• A) Nation A's extra savings would increase the supply of loanable funds to Nation B.
• B) Nation B's government deficit would be a supply of loanable funds to Nation B.
• C) Nation A's extra savings would increase the demand for loanable funds in Nation B.
• D) Nation B would instantly default on all of its debt obligations.
• E) Nation A's extra savings would decrease the supply of loanable funds to Nation B.

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Definitions:

Creativity

Creativity is the ability to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining ourselves and others.

Flexibility

denotes the ability to adapt, change, or be modified easily to fit new conditions or circumstances.

Frontline Employees

Workers who deal directly with customers, performing critical services and representing the company's face to its clientele.

Marketing Strategy

A comprehensive plan formulated by a business to achieve specific marketing objectives and to appeal to the target audiences.