An economy is considered a small open economy if it
a. has GDP less than 1% of world GDP.
b. has a zero trade balance.
c. is too small to affect the world real interest rate.
d. doesn't trade internationally.
Answer: C
An economy is considered a small open economy if it
a. has GDP less than 1% of world GDP.
b. has a zero trade balance.
c. is too small to affect the world real interest rate.
d. doesn't trade internationally.
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