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Question 6

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Use the following to answer questions :
Exhibit: Saving and Investment in a Small Open Economy Use the following to answer questions : Exhibit: Saving and Investment in a Small Open Economy -(Exhibit: Saving and Investment in a Small Open Economy) In a small open economy, if the world interest rate is r<sub>1</sub>, then the economy has: A) a trade surplus. B) balanced trade. C) a trade deficit. D) negative capital outflows.
-(Exhibit: Saving and Investment in a Small Open Economy) In a small open economy, if the world interest rate is r1, then the economy has:


A) a trade surplus.
B) balanced trade.
C) a trade deficit.
D) negative capital outflows.

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