A small open economy increases its investment demand. This causes the world real interest rate to ________ and the country's current account balance to ________

Refer to Figure 16-1. Suppose the economy is in short-run equilibrium above potential GDP and automatic stabilizers move the economy back to long-run equilibrium

Using the static AD-AS model in the figure above, this would be depicted as a movement from A) D to C. B) B to A. C) C to B. D) E to A. E) A to E.

The additional satisfaction that a consumer receives from one more unit of a good or service is known as _____

a. marginal utility b. total utility c. disutility d. profit e. the law of diminishing marginal utility