A large open economy increases its desired saving. This causes the world real interest rate to ________ and the country's current account balance to ________.
A. fall; fall
B. fall; rise
C. remain unchanged; fall
D. remain unchanged; rise
Answer: B
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If average total cost is falling marginal cost must also be falling
Indicate whether the statement is true or false
How do expectations of higher inflation become embedded in the economy and affect actual inflation?
What will be an ideal response?
Who is best known for arguing about the long and variable lags of monetary policy?
A) Friedman B) Keynes C) Phillips D) Greenspan E) Bernanke
The Endangered Species Act has
A. failed in that no species of plant or animal is better off now than when the law was passed. B. succeeded marginally in that 33 of the more than 1200 endangered species now have stable populations. C. succeeded in that there are no endangered species to be concerned about in the U.S. D. made things worse because it allows more species to become extinct.