When there are two large open economies, the world real interest rate will be such that
A. desired international lending by one country equals desired international borrowing by the other country.
B. desired international lending will be the same in both countries.
C. desired international lending and borrowing will be zero in both countries.
D. desired international borrowing will be the same in both countries.
Answer: A
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Using the table, Fred's marginal cost of the 200th slice of pizza is
A) $2.50. B) $6. C) $0.50. D) $20.
When the domestic money prices of goods are held constant
A) a nominal dollar appreciation makes U.S. goods cheaper compared with foreign goods. B) a nominal dollar depreciation makes U.S. goods less appealing in foreign markets. C) a nominal dollar appreciation does not affect the prices of U.S. goods. D) a nominal dollar depreciation makes U.S. goods more expensive compared with foreign goods. E) a nominal dollar depreciation makes U.S. goods cheaper compared with foreign goods and a nominal dollar appreciation makes U.S. goods more expensive compared with foreign goods.