An increase in domestic demand will have which of the following effects in an open economy?
A) a smaller effect on output than in a closed economy and a positive effect on the trade balance
B) a smaller effect on output than in a closed economy and a negative effect on the trade balance
C) a larger effect on output than in a closed economy and a positive effect on the trade balance
D) a larger effect on output than in a closed economy and a negative effect on the trade balance
A
You might also like to view...
A saver can eliminate _______ risk through ________________.
A. systemic; diversification B. idiosyncratic; diversification C. systemic; asset valuation D. idiosyncratic; asset valuation
Stagflation can be defined as a situation characterized by
a. rising prices and rising output. b. rising prices and falling output. c. falling prices and falling output. d. falling prices and rising output.
Eric spends $325 to purchase necklace from Classy's Jewelry Store.
What will be an ideal response?
Which one of the following is not an example of an externality
a. Carbon dioxide emissions from a motor vehicles d. Increased costs of mining iron ore drive up the price of steel b. Acid rain damages wildlife habitat in a region downwind from a factory e. Over-fishing results in the depletion of the food supply of an endangered marine mammal c. A driver enjoys beautiful scenery while driving through a National Forest