Multiple Choice
Suppose the government of a large open economy reduces its spending,so that national saving increases.The result is
A) a decrease in the foreign country's net exports.
B) an increase in the real interest rate.
C) an increase in the foreign country's net exports.
D) a decrease in investment.
Correct Answer:
Verified
Correct Answer:
Verified
Q91: Assuming no change in the effective tax
Q92: A small open economy reduces its desired
Q93: In a large open economy,the home country's
Q94: The best weather in a decade has
Q95: Real domestic interest rates would increase in
Q97: A large open economy has desired national
Q98: Consider a small open economy with desired
Q99: If a country's merchandise exports exceed its
Q100: What were the principal causes of the
Q101: A large open economy reduces its investment