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.

Question

Quizplus · Accepted Answer

A small open economy is one that is too small to affect the world real interest rate. This means that the country's actions, such as changes in its monetary or fiscal policy, will not have a significant impact on the global economy.

An Economy Is Considered a Small Open Economy If It