Suppose an Open Economy Is in Equilibrium

question 14

Multiple Choice

Suppose an open economy is in equilibrium.Given this information,we know with certainty that

• A)G = T.
• B)X = IM.
• C)S = I.
• D)Y = Z.

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Definitions:

Irreversibility

Piaget’s term for a preoperational child’s failure to understand that an operation can go in two or more directions.

Clay

A natural, earthy material composed of minerals with fine particles, used in making pottery, bricks, and sculptures.

Conservation

In psychology, it's the understanding that quantities remain the same even when they are arranged or shaped differently, a concept developed by Jean Piaget.

Irreversibility

The inability to mentally reverse a sequence of events or logical operations back to the starting point.