As the real interest rate in the domestic loanable funds market increases,
a. the cost of purchasing goods and services during the current period will decrease.
b. the net inflow of capital from abroad will increase.
c. the inflationary premium will rise and the money rate of interest will decline.
d. a trade surplus will occur.
B
You might also like to view...
To an economist, individuals are acting "rationally" if they are striving to do their best to achieve their goals
a. True b. False Indicate whether the statement is true or false
How much is the firm's output at the break-even point?
Four points on a demand schedule are given: $12, 2 units; $10, 3 units; $15, 5 units; and $2, 4 units. Which combination is inconsistent with the law of demand?
A. $15 and 5 units B. $12 and 2 units C. $2 and 4 units D. $10 and 3 unit
After consuming what quantity of donuts does the consumer in the table below experience diminishing marginal utility?
A. 1 B. 2 C. 3 D. 4