In a Small Open Economy a Decrease in the Exchange

question 2

Multiple Choice

In a small open economy a decrease in the exchange rate will _____ net exports and shift the _____ curve.

• A) increase; IS
• B) decrease; IS
• C) increase; LM
• D) decrease; LM

---

Definitions:

Fearfully Avoidant

A type of attachment style where individuals are both fearful of getting close to others and avoidant of intimate relationships.

Dismissive Avoidant

An attachment style where an individual maintains their independence and distance in relationships, often avoiding emotional closeness.

Attachment Style

A pattern of emotional bonding and relationship behavior that stems from one's early interactions with caregivers, affecting future relational dynamics.

Securely Attached

A classification in attachment theory indicating an individual who has a positive view of self and others, leading to healthy, adaptive social and interpersonal relationships.