In an open economy, desired domestic lending A) must equal ...

[swpotter12]

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

[catron30]

Answer to Question 1

B

Answer to Question 2

C

[swpotter12]

TYSM

[Joy Chen]

Gracias!