An "Open" Economy Is One in Which

question 138

Multiple Choice

An "open" economy is one in which:

• A) the level of output is fixed.
• B) government spending exceeds revenues.
• C) the national interest rate equals the world interest rate.
• D) there is trade in goods and services with the rest of the world.

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Definitions:

First-Quarter Dividend

A dividend payment made by a company to its shareholders, typically announced after the first financial quarter's results.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Fixed Assets

Long-term tangible property owned by a business that is used in producing goods and services.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.