In an Open Economy,an Increase in Net Exports Because of Increased

question 55

Multiple Choice

In an open economy,an increase in net exports because of increased demand for domestic products by foreigners should cause the domestic real interest rate to ________ and should cause desired saving minus desired investment to ________.

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

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Definitions:

Neurotransmitters

Chemical messengers that transmit signals across synapses from one neuron to another in the nervous system.

Neuron

A specialized cell of the nervous system that receives and transmits messages.

Message

A piece of information or communication conveyed from one person or group to another.

Synaptic Cleft

The narrow gap between the terminal end of a neuron and the neighboring neuron or muscle cell, across which neurotransmitters travel.