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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What will be an ideal response?
The acronym MPC stands for:
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a. True b. False Indicate whether the statement is true or false
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?
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