Because of the increased global unrest, citizens in a small open economy are no longer travelling abroad for their holiday. As a consequence, in the long term the net exports of that small open economy will _____ a) increase because the national savings increased as well b) be unchanged because only the demand for net exports has increased c) fall because the national savings fell as well d) be unchanged because only the demand for net exports has decreased
Because of the increased global unrest, citizens in a small open economy are no longer travelling abroad for their holiday. As a consequence, in the long term the net exports of that small open economy will _____ a) increase because the national savings increased as well b) be unchanged because only the demand for net exports has increased c) fall because the national savings fell as well d) be unchanged because only the demand for net exports has decreased
Chapter4: The Aggregate Economy
Section: Chapter Questions
Problem 5E
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Because of the increased global unrest, citizens in a small open economy are no longer travelling abroad for their holiday. As a consequence, in the long term the net exports of that small open economy will _____
a) increase because the national savings increased as well
b) be unchanged because only the demand for net exports has increased
c) fall because the national savings fell as well
d) be unchanged because only the demand for net exports has decreased
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