At each value of the domestic interest rate, decreases in the riskiness of domestic assets ________ capital inflows, ________ capital outflows, and ________ net capital inflows.

The kinked-demand curve model helps to explain price rigidity because:

A. there is a gap in the marginal revenue curve within which changes in marginal cost will not affect output or price. B. demand is inelastic above and elastic below the going price. C. the model assumes firms are engaging in some form of collusion. D. the associated marginal revenue curve is perfectly elastic at the going price.

Contractionary monetary policy causes

A) aggregate demand to rise and the price level to rise. B) aggregate demand to fall and the price level to fall. C) aggregate demand to rise and the price level to fall. D) aggregate demand to fall and the price level to rise.