A large open economy is an economy
A)that has a large government sector.
B)that has a positive net exports.
C)that is large enough to affect the world real interest rate.
D)that has a positive balance of payments.

Question

Quizplus · Accepted Answer

A large open economy is one that is large enough to affect the world real interest rate, which means it is an economy that is open to international trade and investment. The other choices (A, B, and D) are not necessary conditions for an economy to be considered a large open economy.

A Large Open Economy Is an Economy