In a Large Open Economy ________

question 47

Multiple Choice

In a large open economy ________.

• A)the effect of shifts in saving and investment on the trade balance are in the same direction as in a closed economy
• B)the effect of shifts in saving and investment on net capital flows are in the same direction as in a closed economy
• C)the effect of shifts in saving and investment on the domestic real interest rate and the actual levels of saving and investment are in the same direction as in a closed economy
• D)all of the above
• E)none of the above

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Definitions:

Weatherman

An individual who reports and forecasts weather conditions.

Celebrity Endorser

A famous person who promotes or publicly supports a product, service, or brand.

Sleeper Effect

A phenomenon where a message that was initially discounted or ignored gains persuasiveness over time.

Message Source

The originator of a communication or information that is being conveyed to an audience.