A rational person maximizes
A) risk.
B) return.
C) expected utility.
D) return variance.
C
Economics
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In an open economy, a decrease in net exports because of reduced demand for domestic products by foreigners should cause the domestic real interest rate to ________ and should cause desired saving minus desired investment to ________
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Economics
Banks make use of the federal funds market in part to
A) pay their tax liabilities. B) manage liquidity risk. C) deal with moral hazard. D) deal with adverse selection.
Economics