An economy is considered a small open economy if it
A) is too small to affect the world real interest rate.
B) has GDP less than 1% of world GDP.
C) doesn't trade internationally.
D) has a zero trade balance.
A
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Prices for industrial commodities such as steel rods or machine tools are
A) heavy prices. B) custom prices. C) auction prices. D) sticky prices.
A production function relates
a. the level of output to the level of technology. b. the price level to the level of aggregate output. c. aggregate output to the level of inputs and technology. d. aggregate demand to aggregate supply.
Which investment plan will provide the highest future value: $500 invested at 5 percent annually for four years and then that balance invested at 7 percent annually for an additional three years, or $500 invested at 6 percent annually for seven years?
What will be an ideal response?
Which of the following conclusions about supply-side tax initiatives is accepted by most economists?
A. Supply-side tax cuts are likely to benefit the poor as much as the rich. B. Supply-side tax cuts will almost certainly lead to smaller budget deficits. C. Such tax cuts probably will increase aggregate supply quickly, but an increase in aggregate demand will come later. D. Tax reductions aimed at stimulating business investment are likely to have a greater impact than tax reductions aimed at getting people to work longer hours or save more.