In a two-country world, many economists argue that an increase in the real interest rate in the domestic economy (relative to the real interest rate in the foreign economy)
A) tends to decrease domestic Real GDP.
B) tends to increase domestic Real GDP.
C) tends to have no impact on domestic Real GDP.
D) has an indeterminable impact on domestic Real GDP given the above information.
A
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The distribution of surplus gained from private parties solving an externality problem on their own, as described by the Coase theorem, is dependent on:
A. who has more power to see to enforcement. B. which party has more negotiating power or wealth. C. where the initial rights of the parties lie. D. None of these statements is true.
According to the marginal approach to profit maximization, firms should increase output as long as total revenue is rising
a. True b. False
The supply curve shifts to the right when a seller sells a good.
Answer the following statement true (T) or false (F)
The natural monopoly in Figure 13.3 wants to charge a price of:
A. P1. B. P2. C. P3. D. P4.