Exhibit: Saving and Investment in a Small Open Economy

question 10

Multiple Choice

Exhibit: Saving and Investment in a Small Open Economy

 
Reference: Ref 5-1
(Exhibit: Saving and Investment in a Small Open Economy) In a small open economy, if the world interest rate is r ,then the economy has:

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

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Definitions:

Modern Scientific Evidence

Contemporary data or information obtained through scientific methods used to support or refute hypotheses, theories, or claims.

Cluster C

A category within the Diagnostic and Statistical Manual of Mental Disorders (DSM) that includes anxiety, avoidant, and dependent personality disorders.

Dependent

Relying on someone or something else for support, sustenance, or care, often leading to a lack of autonomy.

Big Five Traits

A model outlining five broad dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.