In a Small Open Economy, If Domestic Saving Equals $50

question 110

Multiple Choice

In a small open economy, if domestic saving equals $50 billion and domestic investment equals $50 billion, then there is ______ and net capital outflow equals ______.

• A) a trade deficit; $100 billion
• B) balanced trade; $0
• C) a trade surplus; $100 billion
• D) balanced trade; $100 billion

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Definitions:

Family Therapy

A form of psychotherapy that aims to address psychological issues and improve relationships within a family by treating the family as a whole.

Collectivist Cultures

Cultures that emphasize the needs and goals of the group as a whole over the needs and desires of each individual.

Humanistic Therapy

A psychotherapeutic approach that emphasizes an individual's inherent drive towards self-actualization and creativity, focusing on the whole person and their unique perspective.

Ethnic Match

The degree of similarity or shared characteristics between an individual's ethnic background and that of others in a specific context.