An Increase in Autonomous Investment in a Small Open Economy

question 65

Multiple Choice

An increase in autonomous investment in a small open economy will cause ________.

• A)a trade surplus to shrink
• B)a trade deficit to shrink
• C)higher net capital outflows
• D)all of the above
• E)none of the above

---

Definitions:

Lineation

The alignment of linear features, such as minerals or textures, within a rock that indicates a directional force or flow.

Deformed

Referring to rocks or earth materials that have been changed in shape or dimension under stress, such as during tectonic activity.

Flattened

Describes objects that have been pressed into a thinner shape or planar surface, often as a result of external pressure.

Low Pressure

A condition in the atmosphere where the air pressure is lower than surrounding areas, often leading to cloudy weather and precipitation.