If Desired Saving Increases in a Small Open Economy,net Exports

question 26

Essay

If desired saving increases in a small open economy,net exports (net capital outflow)rise.What happens to net exports if desired saving rises in most of the world's economies at the same time?

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Definitions:

Economic Loss

Financial loss experienced as a result of another’s actions or failure to act, which can include lost profits, repair costs, and decreased value of property.

Defamation

The act of communicating false statements about a person that injure the reputation of that person.

Business Interruption Insurance

An insurance that covers the loss of income a business suffers after a disaster related to closing its premises or the rebuilding process.

Property Damage

Damage to or destruction of physical property or its loss of use.