When a country experiences capital flight, which of the following rise?
a. its real interest rate and its real exchange rate
b. its real interest rate but not its real exchange rate
c. its real exchange rate but not its real interest rate
d. neither its real interest rate nor its foreign exchange rate
b
Economics
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In the long run, ________ differences in economic growth rates result in ________ differences in GDP per capita
A) small; no B) small; large C) large; no D) large; small
Economics
An increase in the marginal factor cost of labor will
A) lead to an increase in the quantity demanded of labor. B) induce a firm to hire fewer workers. C) lead to an increase in the value of an additional worker. D) cause the value of the marginal product of labor to increase.
Economics