The Saving-Investment Analysis for Large Open Economies Is Somewhat More

question 4

Multiple Choice

The saving-investment analysis for large open economies is somewhat more complicated than the analysis for small open economies mainly because ________.

• A)there is more information to keep track of for larger economies
• B)there are more unknowns in larger economies
• C)a larger economy may actually affect the world economy
• D)all of the above
• E)none of the above

---

Definitions:

Preparation of the Budget

Preparation of the budget involves planning and drafting a detailed financial plan that estimates the income and expenditures for a specific period in the future.

Treasurer

An executive responsible for managing a company's investments, cash flow, financial planning, and related records.

Master Budget

A comprehensive financial planning document that consolidates all of a company's individual budgets relating to sales, cost of goods sold, operations, and capital expenditures into one overarching budget.

Sales Budget

A financial plan that estimates the expected sales revenue for a period, including units sold and revenue expected.