Building an Economic Model Based on the Assumption of a Small

question 73

Multiple Choice

Building an economic model based on the assumption of a small open economy is useful because:

• A) it accurately describes the U.S. economy.
• B) it is more complicated and realistic than a model based on the assumption of a large open economy.
• C) this simplifying assumption can assist our understanding and intuition of open economy macroeconomics.
• D) it is not possible to build models of large open economies.

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Definitions:

Robbery

The act of taking property from another person or their immediate presence through force or threat of force.

Cashier

An employee who handles transactions with customers, typically in a retail environment.

Gun

A weapon incorporating a metal tube from which bullets, shells, or other projectiles are propelled by explosive force.

Immunity

Protection against legal action or from disease; in legal contexts, it often refers to exemption from prosecution.