An Increase in a Small Open Economy's Government Budget Deficit

question 83

Multiple Choice

An increase in a small open economy's government budget deficit that reduces national saving and the current account balance causes an

• A)increase in desired saving.
• B)increase in the world real interest rate.
• C)increase in exports.
• D)increase in absorption.

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Definitions:

Outside Advice

Consultation or recommendations from external experts or professionals to aid in decision-making or project planning.

Harvest Strategy

A plan or approach for realizing and securing profits from a business venture, investment, or asset at a particular point in time.

Harvest Goal

In entrepreneurship, a strategy or objective focused on the point at which the founders or investors decide to exit the business, usually to reap financial rewards.

Crafting Strategy

involves the careful planning and execution of business strategies to navigate competitive markets effectively.