A small 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
B
You might also like to view...
Explain the differences between a federal budget deficit, a federal budget surplus, and a balanced federal budget
What will be an ideal response?
The above table gives techniques Jitters Coffee Company can use to package 5,000 pounds of coffee
If the cost of capital is $50 per unit and the cost of labor is $100 per unit, the economically efficient technique for packaging 5000 pounds of coffee is A) A. B) B. C) C. D) D.
Data shows that countries that invest more and channel more of those investments into productive projects will generally have
a. higher rates of current consumption. b. higher future incomes. c. lower rates of economic growth. d. lower real interest rates.
A union might increase the demand for the labor services of its members by:
A. decreasing the demand for the product it is producing. B. decreasing the prices of complementary inputs. C. decreasing the prices of substitute inputs. D. increasing the prices of complementary inputs.