The domestic real interest rate in a small open economy is
A) determined by the intersection of the supply curve and demand curve for loanable funds in the country.
B) equal to the world real interest rate.
C) the same as its nominal interest rate.
D) determined by the total value of net exports in the country.
B
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When tariffs on imports are eliminated, everyone benefits.
Answer the following statement true (T) or false (F)
In practice, taxes on emissions of pollutants have been found to
a. be ineffective in encouraging firms to pollute less. b. significantly reduce pollution by taxed firms. c. be less reliable in reducing pollution than direct controls on pollution. d. cause failures of the pricing system.
Suppose a wave of optimism causes firms to increase investment. To stabilize output and employment, the Federal Reserve will _____
Fill in the blank(s) with correct word
Both inflation and deflation refer to a change in ______.
a. the price level b. the minimum wage c. the efficiency wage d. the equilibrium wage