As the interest rate increases, the opportunity cost of
a. both c and e are correct
b. past consumption decreases
c. saving increases
d. current consumption increases
e. borrowing decreases
Question 2
Utopia would be a debtor nation
a. if consumers in other countries bought goods and services from Utopia
b. only if it had a deficit in its current account
c. only if it had a deficit in its balance of goods and services
d. if it had a deficit in its balance of trade
e. if it had a deficit after adding together the balances in both its current account and its capital account
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