A decrease in the real risk-free interest rate causes the:
a. Preferred asset ratio for currency in circulation (C/D) to rise, which increases the quantity of real loanable funds supplied.
b. Preferred asset ratio for customary reserves (U/D) to rise, which increases the quantity of real loanable funds supplied.
c. Preferred asset ratio for near money (N/D) to fall, which decreases the quantity of real loanable funds supplied.
e. None of the above.
.C
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The dollar value of total output in the United States
A) equals the value of all physical goods sold in the United States. B) equals all the value of U.S. stocks on the world's stock exchanges. C) equals the value of all resources that can be found in the United States. D) equals the market value of all final goods and services produced in the United States.
In an hour, Sue can produce 40 caps or 4 jackets and Tessa can produce 80 caps or 4 jackets. Who has a comparative advantage in producing caps? If Sue and Tessa specialize and trade, who will gain?
What will be an ideal response?