A large open economy's real interest rate will decrease if
A) the expected future marginal product of domestic capital rises.
B) the expected future marginal product of foreign capital rises.
C) there is a temporary positive domestic supply shock.
D) there is a temporary negative domestic supply shock.
C
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Suppose one county in Missouri decides it wants to reduce alcohol consumption, so the county passes a law that raises the price of a bottle of beer by $1 . As a result, people drive to other counties to drink alcohol, which results in an increase in drunk driving. This illustrates the principle that people respond to incentives
a. True b. False Indicate whether the statement is true or false
One potential outcome of vote trading would be ______.
a. the disappearance of political parties b. the elimination of the influence of special interests c. special interests prevailing and harming the overall good d. equal representation for all people