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In a Small Open Economy, If the World Real Interest

question 16

Multiple Choice

In a small open economy, if the world real interest rate is above the rate at which national saving equals domestic investment, then there will be a trade ______ and ______ net capital outflow.


Definitions:

Water Cooler

A water cooler is a device that cools and dispenses water, often found in workplace environments for hydration and social interaction.

Selling Price

The amount a buyer pays to purchase a product or service.

Automotive Wrecking Yard

A business specializing in dismantling wrecked or decommissioned vehicles for the purpose of selling their parts.

Chain Hoist

A device used for lifting heavy loads by means of a chain, operated manually or electrically.

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