As the real interest rate in the domestic loanable funds market increases,
a. the cost of purchasing goods and services during the current period will decrease.
b. the net inflow of capital from abroad will increase.
c. the inflationary premium will rise and the money rate of interest will decline.
d. a trade surplus will occur.
B
Economics
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The research of economists Stevenson and Wolfers tends to support the Easterlin paradox
Indicate whether the statement is true or false
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When government expenditures increase, the interest rate
a. increases, making the change in aggregate demand larger. b. increases, making the change in aggregate demand smaller c. decreases, making the change in aggregate demand larger. d. decreases, making the change in aggregate demand smaller.
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