When there are two large open economies, if desired international lending by the domestic country exceeds desired international borrowing by the foreign country, then
A. domestic saving must rise.
B. the world real interest rate must rise.
C. the world real interest rate must fall.
D. domestic saving must fall.
Answer: C
Economics
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Refer to Figure 4.5. If all 10 students choose Dash, each student will earn ________ extra points
A) 0 B) 2 C) 4 D) 6
Economics
If labor productivities were exactly proportional to wage levels internationally, this would
A) not negate the logical basis for trade in the Ricardian model. B) render the Ricardian model theoretically correct but practically useless. C) negate the logical basis for trade in the Ricardian model. D) negate the applicability of the Ricardian model if the number of products were greater than the number of trading partners. E) demonstrate the validity of the Ricardian model.
Economics