Assume That Costa Rica,a Small Open Economy,has Increased the Government

Multiple Choice

Assume that Costa Rica,a small open economy,has increased the government budget deficit by 10 million colon,reducing the current account balance in the process.All else being equal,you would expect this action to cause

A) an increase in desired saving in Costa Rica.
B) an increase in the real world interest rate.
C) an increase in exports by Costa Rica.
D) an increase in Costa Rica's absorption.