Multiple Choice1 pointsQuestionIn a small open economy, starting from a position of balanced trade, if the government increases the income tax, thisproduces a tendency toward a trade ______ and ______ net capital outflow.
Add Question HereMultiple Choice1 pointsQuestionHolding other factors constant, legislation to cut taxes in an open economy will:
Add Question HereMultiple Choice1 pointsQuestionStarting from a small open economy with balanced trade, if large foreign countries increase their domestic governmentpurchases, this policy will tend to increase:Answerinvestment in the small open economy.saving in the small open economy.exports by the small open economy.imports by the small open economy.
Add Question HereMultiple Choice1 pointsQuestionStarting from a trade balance, if the world interest rate falls, then, holding other factors constant, in a small openeconomy the amount of domestic investment will _____ and net exports will _____.
Add Question HereMultiple Choice1 pointsQuestionIf the government of a small open economy wishes to reduce a trade deficit, which policy action will be successful inachieving this goal?
Add Question HereMultiple Choice1 points