Problem
1. How does a small open economy differ from a large open economy?
2. What determines whether a small open economy will have a trade surplus or a trade deficit?
3. What happens in a small open economy if there is an increase in domestic saving?
4. What is the effect of an increase in domestic saving or domestic investment on the trade balance and net capital outflows?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.