If the real interest rate rises, the quantity of investment demanded:

A. will fall.
B. will not change.
C. will rise.
D. could rise or fall.


Ans: A. will fall.

Economics

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BAE, a British defense company, has the contract to produce Tornado aircraft for the Royal Air Force. The BBC produces high-quality mystery shows for the British government. Both produce at the lowest possible cost

On a PPF with aircraft and mystery shows on the axes A) BAE and the BBC do not face increasing opportunity costs. B) BAE and the BBC are achieving production efficiency. C) BAE and the BBC are producing at a point outside the PPF. D) the British government is operating outside its PPF.

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First-come, first-serve allocation schemes promote efficiency

Indicate whether the statement is true or false

Economics

Members of the Board of Governors of the Federal Reserve System are appointed for life

a. True b. False Indicate whether the statement is true or false

Economics

A summary record of a country's international economic transactions in a given time period is the

A. Current account. B. Balance of payments. C. Capital account. D. Exchange rate balance.

Economics