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

D

Economics

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From the late 1980s to 2000, the natural rate of unemployment

A) fluctuated up and down, following the path of the actual rate of unemployment. B) gradually declined. C) climbed sharply. D) held constant.

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The simple money multiplier: a. equals the reciprocal of the required reserve ratio

b. assumes banks hold excess reserves. c. becomes larger as the required reserve ratio increases. d. equals required reserves plus excess reserves. e. equals total reserves minus required reserves.

Economics