Author Question: In an open economy, desired domestic lending A) must equal desired domestic borrowing. B) must ... (Read 94 times)

swpotter12 · **on:** Jun 30, 2018

In an open economy, desired domestic lending

A) must equal desired domestic borrowing.
B) must equal desired domestic borrowing plus the amount of international lending.
C) is always greater than desired domestic borrowing.
D) is always less than desired domestic borrowing.

Question 2

When the U.S. real interest rate falls ________.

A) U.S. dollar assets earn a higher return relative to foreign assets
B) it makes U.S. exports more expensive in foreign currencies
C) imports will decrease
D) all of the above
E) none of the above