The Main Difference Between the Small Open Economy and the Large

question 80

Multiple Choice

The main difference between the small open economy and the large open economy is that

• A)the former faces a fixed international real interest rate,but the latter can influence it.
• B)the former can influence the international real interest rate,but the latter cannot.
• C)the former cannot maintain a large current account deficit,but the latter can.
• D)the former can maintain a large current account deficit,but the latter cannot.

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Definitions:

Birthday Rule

A means to identify primary responsibility in insurance coverage; identifies the primary insurance carrier when children have coverage through more than one parent. The insurance of the parent with the birthday earliest in the year, month and day only, is identified as the primary insurer. If both parents have the same birth date, the policy that has been in effect the longest is the primary carrier.

Custody

The legal authority or responsibility to care for someone or something, often used in relation to child custody in legal contexts.

Primary

Refers to the first or most significant condition, factor, or level in a series or system.

Medicare

A federal health insurance program in the United States primarily for people who are 65 or older, as well as for certain younger people with disabilities or specific diseases.