A small open economy increases its investment demand. This causes the world real interest rate to ________ and the country's current account balance to ________
A) rise; fall
B) remain unchanged; rise
C) rise; rise
D) remain unchanged; fall
D
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In the 1980s, U.S. economists acknowledged that it was not possible to exploit the trade-off suggested by the Philips curve of the 1960s. This realization led to more stable macroeconomic policy, which in turn contributed to:
a. more volatility in real output. b. less volatility in real output. c. complete removal of unemployment. d. more volatility in the price level. e. short business cycles.
Comparisons of the link between the growth of the money supply and inflation indicate that
a. countries with high rates of monetary growth also experience high inflation. b. countries with high rates of monetary growth experience low inflation. c. monetary growth rates and inflation are unrelated. d. inflation is primarily the result of restrictive monetary policy.
Which of the following is NOT a factor of production?
A.) A toll-bridge across a lake. B.) The money hidden in an old basement. C.) A wrecking ball used to tear down old buildings. D.) The CEO of a large corporation.
Which of the following is most important in increasing the rate of economic growth?
A. A highly progressive tax structure. B. High interest rates on time deposits. C. Increasing the percentage of GDP used for investment. D. A constant supply of funds available to investors. E.Reducing inequality of income and wealth.