A Very Small Country Is a Net Foreign Borrower

question 81

Multiple Choice

A very small country is a net foreign borrower.Its supply of loanable funds increases but it still remains a net foreign borrower.As a result,the equilibrium quantity of loanable funds used in the country ________ and the country's foreign borrowing ________.

• A)does not change;decreases
• B)does not change;does not change
• C)does not change;increases
• D)increases;does not change
• E)increases;decreases

---

Definitions:

Blue Price

This term does not have a widely recognized definition and could refer to specific market jargon or a particular pricing strategy.

Ambrosia

In Greek mythology, ambrosia is considered the food or drink of the gods, often depicted as conferring longevity or immortality upon whoever consumed it.

Fixed Coefficients

A term used in production and economics to describe technologies where inputs are used in strict fixed proportions to produce an output.

Production Possibility Set

A graph or curve depicting all maximum output possibilities for two or more goods, given a set of inputs.