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.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter23: The International Trade And Capital Flows
Section: Chapter Questions
Problem 12SCQ: If a country is running a government budget surplus, why is (T - G) on the left side of the...
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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.

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