In a Small Open Economy, If Domestic Investment Exceeds Domestic

question 30

Multiple Choice

In a small open economy, if domestic investment exceeds domestic saving, then the extra investment will be financed by:

• A)borrowing from abroad.
• B)lending from abroad.
• C)the domestic government.
• D)the World Bank.

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Definitions:

Comminuted

Describing a fracture in which a bone is broken into several pieces.

Depressed

A state of low mood and aversion to activity that can affect a person's thoughts, behavior, feelings, and sense of well-being.

Proximal Tip

The part of a structure that is nearest to the center of the body or to the point of attachment.

Elbow

The joint connecting the forearm to the upper arm, allowing for arm bending and extension.