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A Large Open Economy Reduces Its Investment Demand

question 101

Multiple Choice

A large open economy reduces its investment demand.This causes the world real interest rate to ________ and the country's current account balance to ________.


Definitions:

Detrimental Effects

Negative impacts or consequences that can harm or hinder someone or something's state, functioning, or well-being.

Gross National Product

The total value of all goods and services produced by a country's residents and businesses, including those produced abroad, over a specific time period.

Gross Domestic Product

A measure of the economic output of a country, calculating the total value of all goods and services produced over a specific time period.

Dollar Value

A measure of the worth of an item, service, or currency expressed in terms of the amount of money it can be exchanged for in U.S. dollars.

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