Problem
1. What is a small open economy?
2. Why is it appropriate to use a small open-economy model to explain events in the United States?
3. In the second model in this chapter, what are the determinants of the current account surplus, and how does each of these determinants affect it?
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.