In the Basic Model of a Small Open Economy,if Consumer

question 64

Multiple Choice

In the basic model of a small open economy,if consumer confidence falls and consumers decide to save more,then the real exchange rate:

• A) rises and net exports fall.
• B) and net exports both rise.
• C) falls and net exports rise.
• D) and net exports both fall.

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Definitions:

Unit of Measurement

A definite magnitude of a quantity, defined and adopted by convention or by law, that is used as a standard for measurement of the same quantity.

Modality

The number of peaks or high points in the frequency distribution of a dataset.

Variability

The degree to which data points in a distribution or set diverge from the central value (mean or median), indicating how spread out the data are.

Symmetry

The property where an object or design is balanced and proportionate, often mirroring one side to another.