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) remain unchanged; rise
C) fall; rise
D) remain unchanged; fall
C
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At the utility maximizing level, the price of a shirt is $15 and the price of a trouser is $12 . At this level, the marginal utility derived from the shirt is 30 utils and the marginal utility derived from the trouser is _____
a. 24 utils b. 30 utils c. 25 utils d. 22 utils
The optimal plant size depends on
a. whether the firm confronts diminishing returns on its fixed factors of production. b. the output the firm expects to produce. c. whether the plant uses capital-intensive or labor-intensive production techniques. d. the preferences of the individual firm owners.
Joel has a 1966 Mustang, which he sells to Susie, an avid car collector. Susie is pleased since she paid $8,000 for the car but would have been willing to pay $11,000 for the car. Susie's consumer surplus is $2,000
a. True b. False Indicate whether the statement is true or false
The relationship between quantity supplied and the price of output is such that
A. an increase in quantity will automatically lead to a reduction in price. B. an increase in price will lead to an increase in quantity supplied. C. quantity will decrease as the number of firms increases. D. an increase in price will produce an inward shift in the supply curve.