In a Small Open Economy, If the Introduction of Automatic-Teller

question 24

Multiple Choice

In a small open economy, if the introduction of automatic-teller machines reduces the demand for money, then net exports:

• A) fall and the real exchange rate falls.
• B) fall but the real exchange rate remains unchanged.
• C) remain unchanged but the real exchange rate falls.
• D) and the real exchange rate remain unchanged.

---

Definitions:

HIV Infection

A condition caused by the human immunodeficiency virus, which attacks the immune system and can lead to acquired immunodeficiency syndrome (AIDS) if not treated.

Chronic Malnutrition

A long-term nutritional deficiency state, often resulting from inadequate intake of nutrients over an extended period, leading to stunted growth, weakened immunity, and overall poor health.

Brain Damage

Physical injury to the brain that impairs its functions, potentially resulting in cognitive, physical, emotional, or behavioral deficits.

Infant Mortality

The death of children under the age of one year, measured by the infant mortality rate per thousand live births.