When Future Labour Income Falls in a Large Open Economy,it

question 86

Multiple Choice

When future labour income falls in a large open economy,it causes the current account to ________ and investment to ________.

• A)fall;rise
• B)rise;remain unchanged
• C)fall;remain unchanged
• D)rise;rise

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Definitions:

Representativeness Heuristic

A cognitive shortcut that involves making judgments based on how well something matches or represents a particular prototype.

Overconfidence

The tendency to be more confident in one's own abilities or outcomes than is objectively justified.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.

Representativeness Heuristic

A cognitive shortcut used in decision-making that involves judging the likelihood of an event based on how closely it matches a prototype or stereotype.