When future labor income falls in a large open economy, it causes the current account to ________ and investment to ________.

The interest rate on long-term bonds is somewhat higher than suggested by the expectations theory because

A) the expectations theory doesn't account for taxes. B) a risk premium exists. C) an inflation premium must be added to long-term bonds. D) the Fed can only control short-term interest rates.

Unions attempt to raise wage rates for their members by

a. reducing the supply of the product their members produce b. lowering barriers to entry so their members have greater opportunities c. reducing the demand for labor so there are fewer nonunion competitors d. negotiating a higher-than-competitive wage rate e. lowering the marginal product of nonunion labor