In a Small Open Economy, If Domestic Investment Exceeds Domestic

question 30

Multiple Choice

In a small open economy, if domestic investment exceeds domestic saving, then the extra investment will be financed by:

• A)borrowing from abroad.
• B)lending from abroad.
• C)the domestic government.
• D)the World Bank.

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Definitions:

General Partner

A member of a partnership who has unlimited personal liability for the debts of the business and takes part in the management of the partnership.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed.

Aversive Stimuli

Unpleasant or negative stimuli that an individual seeks to avoid or escape.

Shuttle-Box Situation

An experimental setup in animal learning studies where an animal is trained to avoid an aversive stimulus by moving from one compartment to another.