Economy, asked by Kigili335, 9 months ago

Explain the difference between small open economy and large open economy

Answers

Answered by Anonymous
1

Explanation:

In a small open economy, investment (capital) flows in and out of a country freely at a fixed world interest rate. In the large open economy model the interest rate r is largely a function of the domestic economy and central bank monetary policies. ... They also have a choice between domestic and foreign investments.

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