A large open economy reduces its investment demand. This causes the world real interest rate to ________ and the country's current account balance to ________
A) rise; fall
B) rise; rise
C) fall; rise
D) fall; fall
C
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Inflation is best defined as
A) a sustained increase in the price of ALL goods and services in an economy. B) a relative price increase. C) a sustained increase in the average of all prices of goods and services in an economy. D) a sustained increase in the price of a single good or service.
The share of GDP taken by taxes has increased dramatically since the 1960s
a. True b. False Indicate whether the statement is true or false
The bonds held in the Social Security Trust Fund
a. are a valuable asset of the federal government. b. will generate a future stream of net income for the federal government. c. are an IOU from one government agency (the U.S. Treasury) to another (the Social Security Administration). d. are necessary to provide retirement benefits for future retirees.
A massive selling of domestic currency assets by domestic and foreign financial investors is called:
A. a speculative attack. B. a currency revaluation. C. protectionism. D. a currency devaluation.