In a Small Open Economy, If Domestic Saving Exceeds Domestic

question 50

Multiple Choice

In a small open economy, if domestic saving exceeds domestic investment, then the extra saving will be used to:

• A) make loans to the domestic government.
• B) make loans to foreigners.
• C) repay the national debt.
• D) repay loans to the Federal Reserve.

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Definitions:

Molecules

Molecules are two or more atoms bonded together, forming the smallest fundamental units of a chemical compound that can take part in a chemical reaction.

Biochemical Reactions

Chemical processes that occur within living organisms to support life, including metabolism, respiration, and photosynthesis.

Cooler Temperatures

Conditions or environments characterized by lower thermal energy, often leading to decreased kinetic energy of atoms or molecules.

Grow More Slowly

A process or condition of developing or increasing in size or scale at a pace that is less rapid than expected or typical.