A small open economy has a current account balance of zero. A rise in the world real interest rate causes
A) a current account surplus.
B) a financial account surplus.
C) net borrowing from abroad.
D) absorption to exceed income.
A
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Deb and Pete have volunteered to help their favorite charity mail out fundraiser information. The figure above shows their production possibilities frontiers for assembling packets and stuffing envelopes
What is Deb's opportunity cost of assembling 1 packet? A) 4 envelopes B) 4 packets C) 160 envelopes D) 1/4 of an envelope E) 40 envelopes
Which of the following is not a condition of monopolistic competition?
a. firms produce a similar product b. products are differentiated c. advertising may exist d. each firm charges the same price for its output
Considering two countries X and Y, country X has an absolute advantage in the production of a good when it can produce the good using fewer resources than country Y
Indicate whether the statement is true or false
Monopolies can misallocate resources by restricting output in an attempt to raise prices and profits
a. True b. False Indicate whether the statement is true or false