If a Large Open Economy,like the United States,reduces Its Budget

question 134

Multiple Choice

If a large open economy,like the United States,reduces its budget deficit,what impact would this have on a small open economy?

• A) higher savings
• B) increased investment
• C) increased net savings
• D) no change in interest rates

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Definitions:

Personal Wellness

Encompasses the physical, mental, and emotional health and well-being of an individual.

Instrumental Values

Values that are considered as a means to an end, guiding how we achieve our desired goals, such as honesty, ambition, and responsibility.

Logic

A systematic method of reasoning that allows for the assessment and construction of valid arguments and the distinction between sound and unsound reasoning.

Independence

The state or condition of being self-reliant and not influenced or controlled by others.