A decline in the output gap causes the demand for real balances
A) to rise and the interest rate to fall.
B) to fall and the interest rate to rise.
C) and the interest rate to fall.
D) and the interest rate to rise.
C
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What happens in the long run if firms in a monopolistically competitive industry are earning positive economic profits? Explain
What will be an ideal response?
The supply of domestic assets ________
A) is insensitive to changes in the nominal exchange rate B) rises when the nominal exchange rate rises C) falls when the nominal exchange rate rises D) equals the value of exports minus the value of imports
Regional specialization did not emerge in the colonies due to the small size of the cities and towns
Indicate whether the statement is true or false
Unemployed workers in developing economies typically have access to various government programs like unemployment insurance, welfare, and food stamps
a. True b. False Indicate whether the statement is true or false