Exhibit: Saving and Investment in a Small Open Economy

question 8

Multiple Choice

Exhibit: Saving and Investment in a Small Open Economy In a small open economy, if the world interest rate is r₃, then the economy has:

• A)a trade surplus.
• B)balanced trade.
• C)a trade deficit.
• D)positive capital outflows.

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Definitions:

JCPenney Company

An American department store chain offering clothing, cosmetics, electronics, and more, known for its mid-range prices and promotions.

Reinforcement Deprivation

A condition in which an individual lacks rewards or positive feedback, which can impact motivation and performance.

Reinforcer

In behavioral psychology, an event or stimulus that increases the likelihood of a behavior being repeated.

Behavior

The actions or reactions of a person or animal in response to external or internal stimuli.