In an Open Economy,an Increase in Net Exports Because of Increased

question 55

Multiple Choice

In an open economy,an increase in net exports because of increased demand for domestic products by foreigners should cause the domestic real interest rate to ________ and should cause desired saving minus desired investment to ________.

• A)rise; rise
• B)rise; fall
• C)fall; rise
• D)fall; fall

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Definitions:

Supreme Court of Canada

The highest court in Canada, which serves as the final court of appeal and arbitrates over disputes concerning constitutional matters, federal and provincial legislation.

Convention Against Torture

United Nations international human rights agreement signed on December 10, 1984, as a commitment against the use of torture in their country for any reason; signatory nations also agree not to use any evidence obtained under torture and not to deport or return people to countries where they are at risk of being tortured.

Active Recruitment

A strategic approach to hiring that involves actively seeking out and engaging with potential candidates for employment, rather than passively waiting for applicants.

Great Depression

A severe worldwide economic downturn that lasted from the late 1920s through the 1930s, leading to mass unemployment and poverty.