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:

Blood Pressure

The force that circulating blood exerts against the walls of the arteries, an essential indicator of cardiovascular health.

Health Care Provider

A professional or organization that offers health care services to individuals, including doctors, nurses, clinics, and hospitals.

Warmed Blankets

Blankets that have been heated, often used in medical settings to maintain or raise a patient's body temperature.

Freezing Lake

A lake whose surface has frozen solid, often occurring in winter, which can present dangers such as hypothermia or falling through the ice.