An Open Economy Has

question 106

Multiple Choice

An open economy has:

• A) greater ability to smooth its consumption because of the absence of domestic shocks.
• B) greater ability to smooth its consumption because of the ability to borrow internationally.
• C) less ability to smooth its consumption because of the lower marginal product of capital.
• D) less ability to smooth its consumption to weak links present in the financial system.

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Definitions:

Potential Customers

Individuals or organizations that are likely to be interested in a company's products or services but have not yet made a purchase.

Finalizing a Sale

The process of completing a transaction wherein the buyer receives the product or service and the seller receives the payment.

Sales Process

A series of steps undertaken by a sales team to convert potential leads into paying customers, typically including stages such as prospecting, presentation, and closing.