In an economy open to international trade where the interest rate at which saving and investment would be equal is ________ the world real interest rate ________
A) above; a trade surplus ensues
B) below; a trade deficit ensues
C) above; there is a net capital outflow
D) below; there is a net capital inflow
E) none of the above
E
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Everything else equal, an increase in the supply of dollars in exchange for pesos:
A) will cause the dollars to depreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market. B) will cause the dollars to appreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market. C) will cause the dollars to depreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market. D) will cause the dollars to appreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market.
Efficiency in output requires which of the following?
a. MC = MRP. b. MC = MFC. c. MC = MU. d. MC = AVC.