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A Large Open Economy Increases Its Desired Saving

question 26

Multiple Choice

A large open economy increases its desired saving.This causes the world real interest rate to ________ and the country's current account balance to ________.


Definitions:

Good Harvest

A particularly productive yield of agricultural produce.

Theocratic

Pertaining to a form of government in which a deity is recognized as the supreme civil ruler, with the deity's laws being interpreted by ecclesiastical authorities.

Hierarchical

Describes a system or organization where individuals or elements are ranked one above the other according to status or authority, often found in corporate, military, and social structures.

Egalitarian

Pertaining to the belief in or practice of human equality, especially with respect to social, political, and economic rights and privileges.

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