A university must decide if it should stop offering foreign language classes. This decision involves answering the economic question of "how to produce."

The property of diminishing marginal rate of substitution follows from the property that the indifference curves are

A) downward sloping. B) upward sloping. C) bowed in toward the origin. D) bowed out from the origin.

Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to real GDP and the monetary base in the context of the Three-Sector-Model? a. Real GDP rises and monetary base rises

b. Real GDP rises and monetary base falls. c. Real GDP and monetary base fall. d. Real GDP and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.