Author Question: In recent decades, the United States A) was essentially a closed economy. B) was generally a net ... (Read 97 times)

Starlight · **on:** Jun 30, 2018

In recent decades, the United States

A) was essentially a closed economy.
B) was generally a net borrower of foreign funds.
C) was generally a net lender abroad.
D) experienced a net outflow of savings.

Question 2

The interest rate at which businesses borrow to fund their investments is higher than the real interest rate for short-term, safe loans, because ________.

A) business borrowers sometimes default on their loans
B) autonomous investment is not dependent on borrowed funds
C) the central bank controls the short-term, safe interest rate
D) the interest rate is negatively-related to business optimism
E) all of the above