A person whose house has declined in value as a result of a nearby factory's fumes is a third party to the market associated with the factory

Which of the following is TRUE?

A) Real and nominal values are not related. B) Real standards of living can increase without any positive economic growth. C) Real standards of living decrease with positive economic growth. D) Real growth rates fail to account for by price level changes.

Capital outflows occur if:

A) domestic interest rates are higher than foreign interest rates. B) domestic interest rates are lower than foreign interest rates. C) domestic and foreign interest rates are the same. D) none of the above.