In a Small Open Economy, If the Government Adopts a Policy

question 41

Multiple Choice

In a small open economy, if the government adopts a policy that lowers imports, then that policy:

• A)raises the real exchange rate and increases net exports.
• B)raises the real exchange rate and does not change net exports.
• C)raises the real exchange rate and decreases net
• D)exports. lowers the real exchange rate.

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Definitions:

Unconditional Positive Regard

Acceptance and love of someone’s whole self without conditions attached.

Self-Actualization

The process of realizing and fulfilling one's own potential and capabilities, often considered the highest level of psychological development.

Achievement Motive

Wanting to accomplish things, usually on one’s own and without help.

Implicit Motives

Unconscious motivations, usually measured with projective tests.