Capital inflows occur if:
A) domestic interest rates are higher than foreign interest rates.
B) domestic interest rates are lower than foreign interest rates.
C) domestic and foreign interest rates are the same.
D) none of the above.
A
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The acronym MPC stands for:
A. marginal production cost. B. marginal propensity to consume. C. marginally perfect consumption. D. macro production cost.
If planned aggregate spending in an economy can be written as PAE = 15,000 + 0.6Y ? 20,000r, and potential output equals 34,000, what real interest rate must the Federal Reserve set to bring the economy to full employment?
A. 3 percent B. 7 percent C. 6 percent D. 5 percent
How does adverse selection affect the economic efficiency of the used car market?
What will be an ideal response?
Consumers should purchase quantities of a good to the point where MU > P
a. True b. False Indicate whether the statement is true or false