A large open economy's real interest rate will decrease if

A. the expected future marginal product of domestic capital rises.
B. there is a temporary positive domestic supply shock.
C. the expected future marginal product of foreign capital rises.
D. there is a temporary negative domestic supply shock.


Answer: B

Economics

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Lisa consumes only pizzas (P) and burritos (B). Her utility function is U = P0.5 B0.5. The price of per pizza is $10 and the price per burrito is $5. In equilibrium, Lisa consumes four pizzas

Using Lisa's utility function, calculate how many burritos she consumes.

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To find the market demand curve for a product, we sum the individual demand curves a. vertically

b. diagonally. c. horizontally. d. perpendicularly.

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A theory of distributional justice that concludes that the social contract emerging from the original position would call for an income distribution that would maximize the well-being of the worst-off member of society is known as

A. relative justice. B. maxi-min justice. C. utilitarian justice. D. Rawlsian justice.

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To maintain a fixed exchange rate, authorities

A) make laws stipulating the exchange rate. B) modify money supply. C) modify government expenses. D) modify taxes.

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