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Author Question: In a two-period model with production, a decrease in the world real interest rate A) increases ... (Read 89 times)

Jramos095

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on: Jun 30, 2018
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


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janeli

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

A


Jramos095

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Reply #2 on: Jun 30, 2018
Correct answers!


janeli

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Reply #3 on: Jun 30, 2018
Great! Please up vote :D


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