In a Small Open Economy, Starting from a Position of Balanced

question 10

Multiple Choice

In a small open economy, starting from a position of balanced trade, if the government increases domestic government purchases, this produces a tendency toward a trade ______ and ______ net capital outflow.

• A) deficit; negative
• B) surplus; positive
• C) deficit; positive
• D) surplus; negative

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Definitions:

Build-It-In Approach

A methodology focusing on integrating quality and efficiency into the process of product or service development rather than inspecting quality after production.

Web 2.0

The second generation of the World Wide Web, characterized by the ability for people to collaborate and share information online.

Social Networking

The use of internet-based platforms and applications to build social connections with others who share similar interests or activities.

User-Generated Content

Content created and shared by the general public rather than by paid professionals and contributors, which can include videos, blogs, discussion form posts, digital images, audio files, and other media.