1.

In a small open economy with a high marginal propensity to import we can assert that: O A. there is no combination of policies that can eliminate the trade deficit. O B. a depreciation will cause only small changes in the trade balance. O C. changes in government spending will cause large changes in the trade balance. O D. changes in government spending will cause large changes in output. O E. all of the above.Sppose a new law is n increase in private savings and it is effective (for example, a new incentive for additional contributions to a retirement savings plan). This increase in private savings (S), with all else constant, can be reflected in: O A. A decrease in investment O B. A decrease in the current account deficit O C. A decrease in the capital account deficit O D. None of the above