In an open economy, an increase in savings because of concerns about the future should cause the domestic real interest rate to ________ and should cause net exports to ________

A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall

C

Economics

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The costs of changing price tags and price listing are known as

a) inflation-induced tax distortions. b) relative-price variability costs. c) shoeleather costs. d) menu costs.

Economics

Are the curves in the figure above drawn CORRECTLY? If not, what's wrong?

What will be an ideal response?

Economics