An Increase in Domestic Demand Will Have Which of the Following

question 67

Multiple Choice

An increase in domestic demand will have which of the following effects in an open economy?

• A)a smaller effect on output than in a closed economy and a positive effect on the trade balance
• B)a smaller effect on output than in a closed economy and a negative effect on the trade balance
• C)a larger effect on output than in a closed economy and a positive effect on the trade balance
• D)a larger effect on output than in a closed economy and a negative effect on the trade balance

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Definitions:

Volume or Mass

The volume refers to the amount of space an object occupies, while mass is a measure of an object's quantity of matter.

Piagetian Thought

A theory of cognitive development proposed by Jean Piaget, detailing how children construct a mental model of the world through stages.

Egocentrism

A cognitive trait where an individual is unable to distinguish between their own perspective and that of others.

Cognitive Development

Refers to the growth and change in mental capabilities such as learning, attention, memory, language, thinking, reasoning, and creativity.