In a Long-Run Model of a Small Open Economy,deficit Reduction

question 88

Multiple Choice

In a long-run model of a small open economy,deficit reduction
I: leads initially to increased net exports.
II: eventually leads to lower foreign debt and increased consumption.

• A) I is true; II is not.
• B) II is true; I is not.
• C) Both I and II are true.
• D) Neither I nor II is true.

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Definitions:

Dendrites

Branch-like extensions of neurons that receive signals from other neurons and are crucial for neuronal function.

Soma

In the field of biology, it refers to the main structure of a living entity separate from its germ cells, and in neuroscience, it pertains to the neuron's soma.

Synapse

The small gap between two adjacent neurons, consisting of the presynaptic and postsynaptic neurons’ membranes and the space between them.

Dendrite

A projection of a neuron that receives signals (electrical and chemical) from other neurons or sensory cells, facilitating neural communication.