When there are two large open economies, the world real interest rate will be such that
A. desired international lending by one country equals desired international borrowing by the other country.
B. desired international lending will be the same in both countries.
C. desired international lending and borrowing will be zero in both countries.
D. desired international borrowing will be the same in both countries.
Answer: A
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The theory of countervailing power provides support for a more laissez-faire approach to government regulation
Indicate whether the statement is true or false
If the real, risk-free interest rate in the Euro-Area rises the:
a. Supply curve of real loanable funds in the Euro-area rises. b. Supply curve of real loanable funds in the Euro-area falls. c. Demand curve for real loanable funds in the Euro-area rises. d. None of the above.
NAFTA is an example of a multilateral approach to achieving free trade
a. True b. False Indicate whether the statement is true or false