In an economy open to international trade where the interest rate at which saving and investment would be equal is ________ the world real interest rate ________
A) above; a trade surplus ensues
B) below; a trade deficit ensues
C) above; there is a net capital outflow
D) below; there is a net capital inflow
E) none of the above
E
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If British real GDP fell, there would be
a. a rightward movement along the supply of British pounds curve in the dollar-pound market b. a leftward movement along the supply of British pounds curve in the dollar-pound market c. an increased supply of British pounds to the dollar-pound market d. a decreased supply of British pounds to the dollar-pound market e. the tendency for the supply of British pounds curve to become steeper in the dollar-pound market
What advantages does a money economy have over a barter economy?
Secure property rights promote economic progress because they
a. encourage individuals to produce efficiently and undertake productive activities. b. weaken the incentive to take actions that increase the value of resources. c. transfer the costs of a decline in property value to the government. d. discourage property owners from engaging in activities that provide value to others.
?In the long run, wages and prices are considered to be:
A. ?fixed. B. sticky. C. ?flexible. D. ?unstable.