The demand curve for funds is downward sloping because
a. the value of the MRP in terms of today's money shrinks as the interest rate rises.
b. future returns must be discounted more when the interest rate rises.
c. as the interest rate rises, more and more investments become unprofitable.
d. All of the above are correct.
d
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The ultimate purpose of the NAFTA free trade agreement is to balance trade between the member nations
Indicate whether the statement is true or false
Use a figure to study the following question: Imagine that the economy is at a point on the DD-AA schedule that is above both AA and DD, where both the output and asset markets are out of equilibrium. Explain what will happen next
What will be an ideal response?
You are the Minister of Trade for a small island country with the following annual PPC:
You are negotiating a trade agreement with a neighboring island with the following annual PPC: 
If you offer to give the other island 1 coconut for every 4 fish they give you, then they will:
A. refuse your offer because they can produce as many coconuts as you can. B. accept your offer because their opportunity cost of a coconut is greater than 4 fish. C. accept your offer because your opportunity cost of a coconuts is less than 4 fish. D. refuse your offer because they have a comparative advantage in fish.
The defensive and offensive actions of the Fed differ because offensive actions are designed to:
A. change the current monetary policy while defensive actions are designed to reinforce the current monetary policy. B. reinforce the current monetary policy while defensive actions are designed to change the current monetary policy. C. tighten monetary policy and defensive actions are designed to ease monetary policy. D. ease monetary policy and defensive actions are designed to tighten monetary policy.