A large open economy reduces its investment demand. This causes the world real interest rate to ________ and the country's current account balance to ________

Recall the Application. Assume that immediately before the housing bubble burst, you purchased a $250,000 home and took out a $225,000 mortgage to make the purchase. When the bubble burst, the value of your home fell by 20 percent

The value of the home is now ________ and you owe the mortgage company ________. A) $180,000; $225,000 B) $200,000; $180,000 C) $200,000; $225,000 D) $180,000; $200,000

An increase in inflationary expectations __________ interest rate

A) raises the natural B) raises the nominal C) lowers the natural D) lowers the nominal