In an open economy with a given level of real interest rates and risk, a decrease in real interest rates abroad will ________ capital inflows and ________ the equilibrium domestic real interest rate.

When a monopolistically competitive firm lowers its price, one good thing happens to the firm. What is this "one good thing" called?

A) the income effect B) the price effect C) the substitution effect D) the output effect

For net present value calculations, the rate of return that one could earn by investing in another project with similar risk is known as the:

A) real interest rate. B) nominal interest rate. C) prime interest rate. D) opportunity cost of capital.