A small country is an international borrower if its real interest ...

[big1devin]

A small country is an international borrower if its real interest rate without foreign borrowing is ________ the world real interest rate.
 
  A) higher than
  B) equal to
  C) lower than
  D) not comparable to

Question 2

Use the figure above to answer this question. Suppose the economy is operating at point a. A move to ________ could be explained by ________.
 
  A) point e; a decrease in the nominal interest rate
  B) point c; an increase in the nominal interest rate
  C) point d; an increase in real GDP
  D) point b; an increase in real GDP

[yuyiding]

Answer to Question 1

A

Answer to Question 2

C