Question 1:

In a world with one very big country and one very small country,

1. equilibrium in the big country does not depend significantly happens in the small country.

2. equilibrium in the small country depends significantly on what happens in the big country.

3. the world rate of interest will be determined by the intersection of the big country's  IS  and  LM  curves.

4. all of the above are true.

Choose the correct option