When a Temporary Adverse Supply Shock Hits a Large Open

question 39

Multiple Choice

When a temporary adverse supply shock hits a large open economy,it causes the current account to ________ and investment to ________.

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

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Definitions:

Myth Of Scarcity

The belief that there is a limited amount of resources available, leading to competitive behaviors and perceptions of scarcity, even when abundance exists.

Secondary Position

A role or status that is considered less important or subordinate to another.

Nonfinancial Resource

Assets or services that contribute to an organization's or individual’s success that are not measured in monetary terms, such as time, expertise, or networks.

Leisure Time

Free time not taken up by work or essential activities, allowing for relaxation, hobbies, or other personal interests.