Suppose that you have $100 today and expect to receive $100 one year from today. Your money market account pays an annual interest rate of 25%, and you may borrow money at that interest rate. Consider the budget constraint between "spending today" on the horizontal axis and "spending a year from today" on the vertical axis. What is the slope of this budget constraint?

An increase in domestic demand will have which of the following effects in an open economy?

A) a smaller effect on output than in a closed economy and a positive effect on the trade balance B) a smaller effect on output than in a closed economy and a negative effect on the trade balance C) a larger effect on output than in a closed economy and a positive effect on the trade balance D) a larger effect on output than in a closed economy and a negative effect on the trade balance

A downward-sloping demand curve shows:

a. the direct relationship between price and quantity supplied; as price increases, the quantity supplied increases. b. the inverse relationship between price and quantity supplied; as price increases, the quantity supplied decreases. c. the direct relationship between price and quantity demanded; as price increases, the quantity demanded increases. d. the inverse relationship between price and quantity demanded; as price increases, the quantity demanded decreases.