In a Saving-Investment Diagram for a Small Open Economy

question 7

Multiple Choice

In a saving-investment diagram for a small open economy

• A)the saving curve is vertical at some fixed level of output.
• B)the saving curve is horizontal at some fixed interest rate.
• C)the real interest rate is fixed at the world real interest rate.
• D)equilibrium requires that Sd = Id.

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Definitions:

Operational Definition

A clear, precise definition of a study variable in terms of the specific methods or procedures used to measure or identify it.

Independent Variable

In an experiment, the variable that is manipulated to test its effects on the dependent variable, to determine causality.

Convenience Sampling

A non-probability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher.

Random Sampling

A technique used in research to select a sample in which each member of the population has an equal chance of being included.