A small open economy increases its desired saving. This causes the world real interest rate to ________ and the country's current account balance to ________
A) fall; fall
B) remain unchanged; rise
C) fall; rise
D) remain unchanged; fall
B
Economics
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Suppose $1 = 10.5 pesos in New York and $1 = 9.6 pesos in Mexico City.If you had $10,000 using arbitrage, your profits would be:
a. $937.50. b. 937 pesos. c. 9,600 pesos. d. $790.
Economics
Refer to the table below. In 2004, what would be the U.S. dollar cost of one euro?
The following table shows the foreign currency per U.S. dollar near the end of January of each year listed.
A. $0.81
B. $1.14
C. $1.23
D. $1.62
Economics