In a two-period model with production, a decrease in the world ...

[Jramos095]

In a two-period model with production, a decrease in the world real interest rate
 
  A) increases the current account surplus and increases real output.
  B) reduces the current account surplus and increases real output.
  C) increases the current account surplus and reduces real output.
  D) reduces the current account surplus and reduces real output.

Question 2

Consider the two graphs above. Suppose that improvements in storage technology reduce inventory losses. This would ________ the desired level of inventories, as depicted in graph ________.
 
  A) increase; B
  B) increase; A
  C) decrease; B
  D) decrease; A

[janeli]

Answer to Question 1

D

Answer to Question 2

A

[Jramos095]

Correct answers!

[janeli]

Great! Please up vote