Assume That an Increase in Costa Rica's Government Budget Deficit

question 72

Multiple Choice

Assume that an increase in Costa Rica's government budget deficit reduced desired national saving by 10 million colon.Assuming Costa rice is a small open economy,you would expect the government's action to

• A)increase the current account balance by exactly 10 million colon.
• B)increase the current account balance by less than 10 million colon.
• C)reduce the current account balance by exactly 10 million colon.
• D)reduce the current account balance by more than 10 million colon.

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Definitions:

Hot Methanol

Methanol used at an elevated temperature in chemical reactions or extraction processes.

Major Organic Product

The primary chemical compound formed in the largest quantity from an organic reaction.

Leaving Group

An atom or group of atoms that detaches from the parent molecule in a chemical reaction, often helping to facilitate the reaction.

Polarizable

Refers to the ability of a molecule or atom to undergo distortion of its electron cloud in response to an external electric field, affecting its physical and chemical properties.