A Small Open Economy Reduces Its Desired Saving

question 92

Multiple Choice

A small open economy reduces its desired saving.This causes the world real interest rate to ________ and the country's current account balance to ________

• A)fall; fall
• B)remain unchanged; rise
• C)fall; rise
• D)remain unchanged; fall

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Definitions:

Acute Phase Reaction

A rapid immune response to tissue injury, infection, or inflammation, characterized by fever, malaise, and changes in white blood cell count.

Long-Term Phase

A stage or period that extends over a considerable timeframe, often referring to chronic conditions or treatments.

Sexual Assault

An act in which someone intentionally sexually touches another person without that person's consent, ranging from unwanted touching to rape.

Safety Plan

A personalized, practical plan that outlines ways to stay safe in times of crisis, often used in mental health contexts to prevent self-harm or suicide.