Author Question: Which of the following would cause a fall in the market interest rate? a. an increase in the risk ... (Read 64 times)

kfurse · **on:** Jun 30, 2018

Which of the following would cause a fall in the market interest rate?
a. an increase in the risk cost of investment
b. an increase in the inflation rate
c. an increase in the marginal rate of return on investment
d. a decrease in the marginal product of capital
e. none of the above

Question 2

When an American buys a Swedish financial asset,
a. both c and d
b. the U.S. balance of goods and services worsens
c. the U.S. capital account balance declines
d. the U.S. balance of payments worsens
e. the U.S. trade balance worsens