In a Small Open Economy, If Consumer Confidence Falls and Consumers

question 22

Multiple Choice

In a small open economy, if consumer confidence falls and consumers decide to save more, then the real exchange rate:

• A) rises and net exports fall.
• B) and net exports both rise.
• C) falls and net exports rise.
• D) and net exports both fall.

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Definitions:

Managerial Accounting

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Regulation S-X

A set of rules issued by the Securities and Exchange Commission (SEC) that dictates the form and content of financial statements submitted by publicly traded companies.