In a Small Open Economy, Policies That Increase

question 12

Multiple Choice

In a small open economy, policies that increase:

• A) investment tend to cause a trade surplus.
• B) investment tend to cause a trade deficit.
• C) saving do not affect the trade balance.
• D) saving tend to cause a trade deficit.

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Definitions:

Prestige

Prestige denotes the respect, admiration, or deference a person or group garners from others, based on accomplishments, quality, or social status.

Parties

Social gatherings or celebrations where people come together to enjoy entertainment, companionship, and often food and drink.

Individual Attributes

Qualities, traits, or characteristics that distinguish or define a person as an individual.

Poverty

A condition where individuals or communities lack the financial resources and essentials for a minimum standard of living, leading to limited access to basic needs such as food, shelter, and healthcare.