Multiple Choice
Exhibit: Saving and Investment in a Small Open Economy
Reference: Ref 5-1
(Exhibit: Saving and Investment in a Small Open Economy) In a small open economy, if the world interest rate is r ,then the economy has:
A) a trade surplus.
B) balanced trade.
C) a trade deficit.
D) positive capital outflows.
Correct Answer:
Verified
Correct Answer:
Verified
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