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:

Neonate

An infant from birth through the first four weeks of life.

Transition

The process or period of changing from one state or condition to another, involving adaptation and change.

First Stage

The initial phase of a process or sequence, often characterized by early development or preliminary actions.

Birth Weight

The weight of a baby at the time of its birth, an important indicator of newborn health and developmental status.