Suppose that a small economy that had previously been closed becomes open. If its real interest rate had previously been below the world real interest rate, we would expect that
A) the country's real interest rate would remain below the world level.
B) the country would become a net lender abroad.
C) the country would become a new borrower abroad.
D) the amount of loanable funds supplied in the country would decline.
B
Economics
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The payment of a dividend by a foreign company to an American stockholder represents
A) a debit in the U.S. capital account. B) a credit in the U.S. current account. C) a credit in the U.S. official reserve account. D) a debit in the U.S. current account.
Economics
How will the crisis affect the natural rate of unemployment?
What will be an ideal response?
Economics