Which of the following is true?
a. When real interest rates are lower in country A than country B there will tend to be a capital flow from country B to country A.
b. Capital flows tend to move real interest rates in different countries toward equality.
c. Capital flows will tend to decrease real interest rates in countries with a capital outflow.
d. Both b. and c. are correct.
Question 2
The unemployment rate measures:
a. unemployed workers as a percentage of the population.
b. unemployed workers as a percentage of the population over the age of sixteen.
c. unemployed workers as a percentage of the labor force.
d. the number of people unemployed divided by the number of people employed.
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