Starting from a Small Open Economy with Balanced Trade, If

question 77

Multiple Choice

Starting from a small open economy with balanced trade, if large foreign countries increase their domestic government purchases, this policy will tend to increase:

• A) investment in the small open economy.
• B) saving in the small open economy.
• C) exports by the small open economy.
• D) imports by the small open economy.

---

Definitions:

Separate Property

Assets owned by one spouse independently and not considered shared marital property in the event of divorce or separation.

Inheritances

Assets passed down from an individual to their heirs or designated beneficiaries upon death.

Guardian Ad Litem

A person appointed by the court to represent the interests of a child or mentally incompetent person before the court.

Appointed

Officially designated or chosen to fill a position or role.