Between 1917 and 1982, the US ran a financial account deficit

In the long run,

a. all the firm’s resources are variable. b. some of the firm’s resources are variable. c. none of the firm’s resources are variable. d. the time period exceeds one year.

If the government reduces the effective tax rate on capital (in a closed economy), then the real interest rate ________ and saving ________.

A. rises; declines B. rises; increases C. falls; declines D. falls; increases