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:

Hadrian

Roman Emperor from 117 to 138 A.D., known for constructing Hadrian's Wall which marked the northern limit of Britannia.

Architectural Coffering

A series of sunken panels in the shape of squares, rectangles, or octagons in a ceiling, soffit or vault, used as a decorative element in classical architecture.

Lighten Weight

The process or action of making an object less heavy or reducing its mass.

Dome

A Dome is an architectural element featuring a hollow upper half of a sphere, commonly used in buildings to cover a large space without the need for internal supports, notable in religious and governmental buildings.