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.

Holding the nominal interest rate constant, a ________ in the expected rate of inflation tends to ________ the real interest rate

A) rise; increase. B) fall, decrease. C) fall; increase. D) rise; improve.

When the policy rate hits its lower bound and inflation keeps falling, this portion of the Monetary Policy curve is

A) downward sloping. B) upward sloping. C) flat. D) undetermined.