A Large Open Economy Increases Its Desired Saving

question 26

Multiple Choice

A large open economy increases its desired saving.This causes the world real interest rate to ________ and the country's current account balance to ________.

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

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Definitions:

Hiatal Hernia

A condition in which part of the stomach protrudes through the diaphragm into the chest cavity, often causing heartburn.

Postanesthesia Care Unit (PACU)

A specialized hospital area where patients recover from anesthesia after surgery, closely monitored by health professionals.

Postsurgical Unit

is a specialized hospital ward where patients are cared for after undergoing surgery, focusing on recovery and monitoring.

Surgical Consent

A formal agreement by a patient to undergo a particular surgical procedure, after understanding the risks, benefits, and alternatives.