Solved

A Small Open Economy Has a Current Account Balance of Zero.A

Question 39

Multiple Choice

A small open economy has a current account balance of zero.A rise in the world real interest rate causes


A) a current account surplus.
B) a capital account surplus.
C) net borrowing from abroad.
D) absorption to exceed income.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions