Starting from a Small Open Economy with Balanced Trade, If

question 77

Multiple Choice

Starting from a small open economy with balanced trade, if large foreign countries increase their domestic government purchases, this policy will tend to increase:

• A) investment in the small open economy.
• B) saving in the small open economy.
• C) exports by the small open economy.
• D) imports by the small open economy.

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Definitions:

Absolute Rights

Fundamental rights that are universally recognized and protected, often considered inherent to human dignity and not subject to being taken away or abridged by laws.

Police Power

Power retained by each state to pass laws that protect the health, safety, and welfare of its citizens.

Citizenry

The total body of citizens of a particular place; denoting the inhabitants or constituents of a nation or area.

NLRB v. Jones & Laughlin Steel Corp.

A landmark United States Supreme Court decision that upheld the constitutionality of the National Labor Relations Act, allowing for stronger federal protection of workers' rights.