If a Small Open Economy Reduces Its Budget Deficit,the Result

question 35

Multiple Choice

If a small open economy reduces its budget deficit,the result will be

• A) a lower world real interest rate, but no change in the domestic real interest rate.
• B) a lower domestic real interest rate, but no change in the world real interest rate.
• C) lower domestic and world real interest rates.
• D) no change in either the domestic or world real interest rate.

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Definitions:

Job Interview

A formal meeting in which an individual is assessed by an employer for prospective employment.

Prospecting Cover Letter

A type of cover letter tailored to introduce oneself and inquire about job opportunities in a company without a specific job opening.

Organization

A structured group of people with a specific purpose or goal, such as businesses, governments, or charities.

Candidates

Individuals who are considered for a role or position, especially in the context of employment, elections, or competitive selections.