According to the Open-Economy Macroeconomic Model, Which of the Following

question 17

Multiple Choice

According to the open-economy macroeconomic model, which of the following would NOT be a consequence of an increase in the Canadian government budget deficit?

• A)Canadian trade balance rises.
• B)Canadian net capital outflow falls.
• C)Canadian investment abroad decreases.
• D)The real exchange rate of the Canadian dollar appreciates.

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Definitions:

Superego

In psychoanalytic theory, the part of the personality that acts as a moral center, enforcing ethical conduct and striving for perfection.

Psychological Development

The changes in cognitive, emotional, and social capabilities and behaviors across the lifespan, influenced by a mixture of genetic and environmental factors.

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and to manage emotional conflict and internal or external stressors.

Repression

A defense mechanism in psychoanalytic theory where unpleasant thoughts, memories, or desires are excluded from conscious awareness.