In the coordination failure model, we mention sunspots because
A) they influence business cycles.
B) apparently irrelevant events may influence business cycles.
C) in central banker speak, they are synonymous with open market operations.
D) seasonal sunshine has an impact on the business cycle.
B
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When firms increase capital stock, the productivity of their workers increases
Indicate whether the statement is true or false
If real interest rate in Country X increases relative to the real interest rate in Country Y and there are no trade barriers between the two countries, then for Country X which of the following will be true of its capital flow, the value of its currency, and its exports?
(a) Inflow / Appreciation / Increase (b) Inflow / Appreciation / Decrease (c) Inflow / Depreciation / Increase (d) Outflow / Depreciation / Increase (e) Outflow / Appreciation / Decrease