Multiple Choice
Which of the following is true of a small open economy,but not of a large open economy?
A) Net exports are unlikely to be close to zero.
B) The domestic real interest rate is equal to the world real interest rate.
C) Changes in desired investment result in changes in the trade balance.
D) Changes in desired investment result in changes in actual investment.
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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