In a large open economy,
A) domestic lending and borrowing decisions have no impact on the world real interest rate.
B) an increase in the domestic supply of loanable funds would lower the world real interest rate.
C) the domestic equilibrium real interest rate is determined independently of foreign borrowing and lending.
D) an increase in the domestic demand for loanable funds would lower the world real interest rate.
B
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The Federal Reserve Bank of 1914 permitted the Fed to compete with banks for profits
Indicate whether the statement is true or false
Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. What happens if Max's mother gives him 10 pounds of burger?
A) Max would have preferred receiving the dollar value of the burger. B) Max is indifferent between this gift and the dollar value of the burger. C) Max prefers this gift to the dollar value of the burger. D) None of the above.