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Romashka [77]
2 years ago
11

In a small open economy, if the world real interest rate is above the rate at which national saving equals domestic investment,

then there will be a trade ______ and ______ net capital outflow. a. surplus; negative b. deficit; positive c. surplus; positive d. deficit; negative
Business
1 answer:
marysya [2.9K]2 years ago
6 0

There will be a trade surplus and positive net capital outflow.

There will be a net capital outflow if the global interest rate is higher than the domestic interest rate. Exports will exceed imports, resulting in a trade surplus.

<h2>What are the characteristics of an open economy?</h2>
  • Its economy is reliant since it depends on other nations for both imports and exports.
  • International alterations have an impact on it.
<h2>What is a trade surplus?</h2>
  • There will be a net capital outflow if the global interest rate is higher than the domestic interest rate. export surplus A trade surplus is an economic indicator indicating a favorable trade balance where a nation's exports are more than its imports.
  • When the outcome of the computation above is positive, there is a trade surplus. A trade surplus is the result of a net local money inflow from international markets. because exports will exceed imports.

Learn more about trade surplus and trade deficit  :

brainly.com/question/17717899?referrer=searchResults

#SPJ4

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