Jul
3
Which of the following events will increase the domestic real interest rate in an open economy?
July 3rd, 2010 posted by
admin
A. An increase in domestic saving
B. A decrease in 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
Umer Nasim says:
July 3rd, 2010 at 8:34 am
The answer is “E. a decrease in the government’s budget deficit”