When the U.S. real interest rate falls ________
A) U.S. dollar assets earn a higher return relative to foreign assets
B) it makes U.S. exports more expensive in foreign currencies
C) imports will decrease
D) all of the above
E) none of the above
C
You might also like to view...
The market level (magnitude) of economic rent is determined by the
a. supply side of the market. b. demand side of the market. c. intersection of supply and demand. d. elasticity of demand for land.
One way to characterize the difference between positive statements and normative statements is as follows:
a. Positive statements tend to reflect optimism about the economy and its future, whereas normative statements tend to reflect pessimism about the economy and its future. b. Positive statements offer descriptions of the way things are, whereas normative statements offer opinions on how things ought to be. c. Positive statements involve advice on policy matters, whereas normative statements are supported by scientific theory and observation. d. Economists outside of government tend to make normative statements, whereas government-employed economists tend to make positive statements.