Which of the following is not correct for a small open economy?
A)She cannot improve her BOT.
B)She cannot affect the international price of goods.
C)She cannot affect the foreign interest rate.
D)All of the above.

Question

Quizplus · Accepted Answer

A small open economy can improve its balance of trade (BOT) by adjusting its domestic policies, such as fiscal policy or exchange rate policy, even though it cannot influence international prices or foreign interest rates.

Which of the Following Is Not Correct for a Small