Q1: In a small open economy, if the world real interest rate is higher than the equilibrium real interest rate when the economy is closed, then net exports are:

A: Equal to zero

B: Not enough information to answer this question

C: Negative

D: Positive

Q2: In a small open economy, a deficit neutral change in G and T keeps public savings unchanged "change"(T-G) What is the change in the trade balance?

A: the trade balance increases

B: the trade balance decreases

C: the trade balance stays the same

D: Not enough information to answer this question