In an Open Economy, Investment Can Be Funded Externally, Possibly

question 98

Multiple Choice

In an open economy, investment can be funded externally, possibly leading to:

• A) very unstable consumer spending, which may lead to recession.
• B) unsustainable debt.
• C) foreign control of domestic corporations.
• D) a simultaneous increase in income and smooth consumption, with adherence to the long-run budget constraint.

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Definitions:

Digital Revolution

The shift from traditional industries to an economy based on information technology, beginning in the late 20th century.

Information Overload

A state where an individual is exposed to too much information to process effectively, leading to decision-making difficulties or stress.

Upward Communication

The process of information flow from the lower levels of a hierarchy to the upper levels within an organization, typically encompassing feedback, reports, or requests.

Open-door Policy

A management practice that encourages open and direct communication between employees and their supervisors or managers.