Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 

For a borrower, an increase in the real interest rate

A) definitely reduces current consumption and increases future consumption. B) reduces current consumption and has an uncertain effect on future consumption. C) has an uncertain effect on current consumption and increases future consumption. D) has an uncertain effect on both current and future consumption.

In the high-income economies of the world, only about 2% of GDP comes from ______________.

a. manufacturing b. agriculture c. services d. textiles