When there are two large open economies, if desired international borrowing by the domestic country exceeds desired international lending by the foreign country, then
A. the world real interest rate must rise.
B. domestic investment must fall.
C. domestic investment must rise.
D. the world real interest rate must fall.
Answer: A
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A good that is rival and excludable is a ________
Fill in the blank(s) with correct word
A reason a nation faces diminishing returns along a production function is because
A) unemployment always exists. B) potential GDP is fixed. C) the quantity of physical capital is fixed. D) full employment is not possible. E) the wage rate is fixed while moving along the production function.
Unilateral transfers between countries are
A) long-term loans. B) only international gifts, never payments that do not correspond to the purchase of any good, service, or asset. C) part of the current account but not a part of national income. D) known for reducing the income of capital owners. E) the difference between Y and GNP if the identity Y = C + I + G + CA holds exactly.
Which answer ranks the elasticities of supply from highest to lowest?
a. market-day, short-run, long-run b. short-run, long-run, market-day c. long-run, short-run, market-day d. short-run, market-day, long-run e. long-run, market-day, short-run