The target rate of unemployment is:

If the United States is a "net lender" abroad, ________. (Assume that the capital account is zero and net transfers are zero.)

A) the United States must be exporting less than it is importing B) net foreign investment must be negative C) national saving is greater than domestic investment D) net capital flows must be positive

When property rights are well defined and inexpensive to enforce, ________

A) collateral is an efficient solution to asymmetric information problems B) little or no collateral is needed to secure a loan C) banks become less dominant among intermediaries D) poor borrowers are at no disadvantage relative to wealthy borrowers