Suppose the Government of a Small Open Economy Reduces Its

question 51

Multiple Choice

Suppose the government of a small open economy reduces its spending,so that national saving increases.The result is

• A)an increase in the real interest rate.
• B)an increase in net exports.
• C)a decrease in the real interest rate.
• D)an increase in investment.

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Definitions:

Corporate Volunteerism

A program where businesses encourage their employees to volunteer their time and skills to community service projects, often as a part of the company's corporate social responsibility efforts.

Golf Shop

A retail store specializing in selling golf equipment, apparel, and accessories for golfers.

Canned Food Drives

Organized collections of non-perishable food items, typically canned goods, donated to support those in need, such as the less fortunate or disaster victims.

Sustainability Critical

Pertains to essential considerations in ensuring that business operations are environmentally sustainable and do not deplete natural resources.