In an Open Economy,Y = C + I + G

question 19

Multiple Choice

In an open economy,Y = C + I + G + NX.From this we may infer that ________.

• A)output is greater in an open economy than in a closed economy
• B)the condition for goods market equilibrium is that S = I + G + NX
• C)net exports can be zero only if the domestic real interest rate is equal to the world real interest rate
• D)if saving is greater than zero,NX cannot be zero
• E)none of the above

---

Definitions:

Knee-Jerk Reflex

A reflexive action in which the knee extends (jerks) automatically when the patellar tendon is tapped, assessed in neurological examinations.

Central Nervous System

Part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out information.

Activities

Tasks or actions that are undertaken for various purposes such as leisure, learning, or physical exercise.

Autonomic Nervous System

This system manages involuntary physiological functions including heart rate, digestion, and respiratory rate, operating below the level of consciousness.