At the equilibrium real interest rate in the open-economy macroeconomic model, the amount that people want to save equals the desired quantity of
a. net capital outflow.
b. domestic investment.
c. net capital outflow plus domestic investment.
d. foreign currency supplied.
c
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What do Wal-Mart, the Microsoft Corporation, and the Dell computer company have in common?
A) Each achieved a dominant position in its industry because it owned a key input in the production of its product. B) The industry in which each firm competes is an oligopoly because of government-imposed barriers to entry. C) Each company was founded in the same state. D) The profitability of each firm depends on its interactions with other firms.
A price tag of $400 for a tablet device is an example of money as
A) a store of value. B) a time deposit. C) a unit of accounting. D) a medium of exchange.
For a firm in perfect competition, a diagram shows quantity on the horizontal axis and both the firm's marginal cost (MC) and its marginal revenue (MR) on the vertical axis. The firm's profit-maximizing quantity occurs at the point where the
A) slope of the MC curve is zero. B) MC and MR curves are parallel. C) MC curve intersects the MR curve from below, going from left to right. D) MC curve intersects the MR curve from above, going from left to right.
If policy makers expand aggregate demand, they can lower unemployment ____, but only by ____
a. temporarily; decreasing inflation b. temporarily; increasing inflation c. permanently; decreasing inflation d. permanently; increasing inflation