The reason that higher interest rates reduce aggregate demand in an open economy with capital flows is that investment
a. increases generated by higher interest rates are offset by net export decreases.
b. decreases generated by higher interest rates are coupled with net export decreases.
c. decreases generated by higher interest rates are offset by net export increases.
d. increases generated by higher interest rates are coupled with net export increases.
b
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A probability weighted value is referred to as a(n):
A) discount value. B) reduced value. C) expected value. D) future value.
What are the three basic economic questions that must be answered by all societies?
What will be an ideal response?
Scholars know the national origins of Americans at the end of the colonial period because
(a) the study of surnames provides the necessary information. (b) people had to declare their country of origin when entering the colonies. (c) tax laws required this information. (d) an annual census provided this information.
A firm is an organization that produces
a. only goods for sale to households b. only services for sale to households c. goods and services for sale to households and businesses d. only goods for sale to other businesses e. only resources