For a Small Open Economy,an Increase in the World Real

question 31

Multiple Choice

For a small open economy,an increase in the world real interest rate would necessarily

• A)increase net foreign lending.
• B)decrease net exports.
• C)decrease the current account balance.
• D)worsen the balance of payments.

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Definitions:

Natural

Existing in or derived from nature; not made or caused by humans.

Low-Context

Refers to communication in which most of the information is encoded in the explicit text rather than assumed by the context or understood between the lines.

Traditional

Pertains to customs, beliefs, or methods that have been passed down through generations.

Monochronic Time

A cultural concept referring to the preference for doing one thing at a time, emphasizing schedules, punctuality, and a linear sense of time.