In a Small Open Economy, Policies That Increase

question 12

Multiple Choice

In a small open economy, policies that increase:

• A) investment tend to cause a trade surplus.
• B) investment tend to cause a trade deficit.
• C) saving do not affect the trade balance.
• D) saving tend to cause a trade deficit.

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Definitions:

Legislative Bodies

Legislative Bodies are formal assemblies or groups vested with the authority to make, amend, and repeal laws, such as parliaments or congresses.

Plaintiff

A party that initiates a lawsuit.

Defendant

One against whom a lawsuit is brought, or the accused person in a criminal proceeding.

Jurisdiction

The authority of a court to hear a case and decide a specific action.