33. Which of the following events will increase the domestic real interest rate in an open economy?

April 4th, 2010 posted by admin


33. Which of the following events will increase the domestic real interest rate in an open economy?

A. an increase in domestic saving .
B. a decrease in the domestic saving.
C. a decrease in the perceived riskiness of investing in the domestic economy.
D. an increase in taxes on profits generated by capital .
E. a decrease in the government’s budget deficit.

34. The primary cause of trade deficits is:

A. production of poor quality goods.
B. unfair trade restrictions.
C. low rates of national saving.
D. high rates of national saving.
E. cheap foreign labor.

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