All else equal, an increase in net exports accompanied by a decrease in expected future profits would definitely result in
A) an increase in the equilibrium real interest rate.
B) a decrease in the equilibrium real interest rate.
C) an increase in the equilibrium level of saving and investment.
D) a decrease in the equilibrium level of saving and investment.
D
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In the figure above, Lourdita faces a 0.5 probability of receiving $3,000 and a 0.5 probability of receiving $9,000. Her cost of bearing this risk is the distance from
A) A to F. B) A to D. C) B to E. D) C to E.
The division of labor helps to explain why workers do not consume most of what they produce
a. True b. False Indicate whether the statement is true or false
The ___________ curve facing a perfectly competitive firm is perfectly elastic.
A. average total cost B. marginal cost C. supply D. demand
You are responsible for purchasing 25 used cars for your company. Star Brand cars costs $7,500 and Diamond Brand cars cost $6,000. Based on experience, you believe that 20% of Star Brand cars are lemons (low quality) while 40% of Diamond Brand cars are lemons (low quality). You are willing to pay $5,000 for a known lemon and $12,000 for a known plum. Which brand do you purchase?
A. Star Brand B. Diamond Brand C. You are indifferent between brands. D. You don't buy either brand.