A large open economy
A. lends or borrows enough in the international capital market to influence the world real interest rate.
B. has a larger population than all small open economies.
C. dominates world trade in one or more products.
D. is physically larger than all small open economies.
Answer: A
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When the Fed conducts an open market operation by purchasing securities from a bank, ________
A) public holdings of securities increase B) the bank's deposits increase but its reserves do not change C) the bank's deposits increase but its reserves decrease D) the bank's reserves increase
Which of the following counts as part of the supply of loanable funds?
a. bank deposits and purchases of bonds b. bank deposits but not purchases of bonds c. purchases of bonds but not bank deposits d. neither purchases of bonds nor bank deposits
Subtract the subsidy from the minimum supply price
What will be an ideal response?
Legislation passed shortly after September 11, 2001 saw the federal government become
A. the insurer (hence, re-insurer) of last resort. B. the primary insurer in the U.S. C. the primary insurer for all acts of terrorism but not for other losses. D. the primary re-insurer in the U.S.