A Small Open Economy Has a Current Account Balance of Zero.A

question 39

Multiple Choice

A small open economy has a current account balance of zero.A rise in the world real interest rate causes

• A)a current account surplus.
• B)a capital account surplus.
• C)net borrowing from abroad.
• D)absorption to exceed income.

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Definitions:

Positive Reinforcement

Involves the addition of a rewarding stimulus following a desired behavior, increasing the likelihood of that behavior being repeated.

Negative Punishment

A behavior modification technique where a desirable stimulus is removed after a particular behavior, with the aim of decreasing that behavior.

Negative Reinforcement

A behavior modification technique where the removal of an unfavorable outcome or stimulus strengthens or increases the likelihood of a specific response or behavior.

Variable-Interval Schedule

A reinforcement schedule in which the behavior is reinforced after an unpredictable amount of time has passed, creating a steady, consistent response rate.