Consider a Small Open Economy with Desired National Saving of Sd

question 23

Multiple Choice

Consider a small open economy with desired national saving of Sd = 200 + 10,000rw and desired investment of Id = 1,000 - 5,000rw.If rw = 0.05,then a rise in government spending of 50 with no change in private saving causes net exports to become

• A)100.
• B)50.
• C)-50.
• D)-100.

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Definitions:

LH

Luteinizing hormone, a hormone produced by the anterior pituitary gland that triggers ovulation in females and stimulates testosterone production in males.

FSH

Follicle-Stimulating Hormone, a gonadotropin involved in the regulation of reproductive processes such as gamete production and menstrual cycle.

Estrogen

A group of steroid hormones that play an essential role in the development and maintenance of female characteristics and reproductive processes.

Corpus Luteum

A temporary endocrine structure in female ovaries that produces hormones, primarily progesterone, following ovulation.