A large open economy's real interest rate will decrease if
A)the expected future marginal product of domestic capital rises.
B)the expected future marginal product of foreign capital rises.
C)there is a temporary positive domestic supply shock.
D)there is a temporary negative domestic supply shock.

Question

Quizplus · Accepted Answer

The Answer of A large open economy's real interest rate will decrease if
A)the expected future marginal product of domestic capital rises.
B)the expected future marginal product of foreign capital rises.
C)there is a temporary positive domestic supply shock.
D)there is a temporary negative domestic supply shock.

A Large Open Economy's Real Interest Rate Will Decrease If