Which of the Following Is a Possible Impact of a Global

question 73

Multiple Choice

Which of the following is a possible impact of a global savings glut on a small open economy?

• A) interest rate would increase
• B) interest rate would decrease
• C) domestic savings would increase
• D) domestic investment would increase

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Definitions:

Human Capital

The collective skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Agricultural Sector

The segment of an economy devoted to the production, processing, and distribution of food, fibers, and other plant and animal products.

Developing Countries

Nations with a lower living standard, undeveloped industrial base, and lower Human Development Index (HDI) relative to other countries.

Farm Productivity

The output of agricultural goods per unit of input, such as labor or land, over a certain period.