In a Large Open Economy,an Increase in ________ Leads to ________

question 54

Multiple Choice

In a large open economy,an increase in ________ leads to ________.

• A)desired saving;an increase in the domestic interest rate
• B)desired investment;an decrease in the domestic interest rate
• C)desired saving;an increase in desired investment
• D)desired saving;a decrease in actual investment
• E)none of the above

---

Definitions:

Trust

A psychological state comprising the intention to accept vulnerability based upon positive expectations of the intentions or behavior of another.

Middle Adulthood

A stage of life typically considered to occur roughly between the ages of 40 to 65, characterized by stability in relationships, career, and sense of self, but also facing challenges such as aging and reflecting on life achievement.

Erik Erikson

A developmental psychologist known for his theory on the psychosocial development of human beings, which outlines eight stages from infancy to adulthood.

Intimacy

The feeling of being close and emotionally connected and supported; it involves trust, vulnerability, and an exchange of personal thoughts and feelings.