In a Small Open Economy, If the World Real Interest

question 16

Multiple Choice

In a small open economy, if the world real interest rate is above the rate at which national saving equals domestic investment, then there will be a trade ______ and ______ net capital outflow.

• A) surplus; negative
• B) deficit; positive
• C) surplus; positive
• D) deficit; negative

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Definitions:

Performance Rating

An evaluation of an employee's work performance, often used to guide decisions on promotions, raises, and development.

Standard Time

The established amount of time required to perform a specific task or operation under normal working conditions, often used in industrial settings for performance benchmarking.

Constant Allowances

Fixed time increments added to the standard time to account for delays or non-productive aspects of a job, ensuring more accurate time estimates.

Performance Rating

An assessment or evaluation of an individual’s or group's work performance, usually based on established criteria and objectives.