Assume That an Increase in Costa Rica's Government Budget Deficit

question 58

Multiple Choice

Assume that an increase in Costa Rica's government budget deficit reduced desired national saving by 10 million colon.Assuming Costa Rica is a small open economy,you would expect the government's action to

• A)increase the current account balance by exactly 10 million colon.
• B)increase the current account balance by less than 10 million colon.
• C)reduce the current account balance by exactly 10 million colon.
• D)reduce the current account balance by more than 10 million colon.

---

Definitions:

Endings

The conclusion or final part of something, such as an event, story, or process, often marking the cessation of activities or the achievement of a goal.

Bottoming Out

A point at which an individual reaches their lowest state, often leading to a moment of clarity or change.

Emotional Burden

The emotional stress or weight carried by an individual, often due to difficulties or hardships.

Major Life Changes

Significant events or transitions in an individual’s life that can have a profound effect on their well-being and require substantial adaptation.