Suppose the government of a small open economy reduces its spending, so that national saving increases. The result is
A. a decrease in the real interest rate.
B. an increase in the real interest rate.
C. an increase in investment.
D. an increase in net exports.
Answer: D
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The monetary rule is the view of the
The price elasticity of demand measures the
a. responsiveness of a good's price to a change in quantity demanded b. adaptability of suppliers when a change in demand alters the price of a good c. responsiveness of quantity demanded to a change in a good's price d. adaptability of buyers when there is a change in demand e. responsiveness of quantity supplied to a change in quantity demanded
In the long run, a perfectly competitive industry tends to develop differentiated products
a. True b. False Indicate whether the statement is true or false
A monopolistically competitive industry is in the process of moving toward long-run equilibrium. This period the product of a typical firm has more substitutes than last period. This means that
A. there was entry into the industry. B. a typical firm will produce more this period. C. a typical firm's profits will fall this period. D. both a and c E. all of the above