If the World Real Interest Rate Were to Fall Below

question 69

Multiple Choice

If the world real interest rate were to fall below the rate at which domestic saving and investment would be equal ________.

• A)saving would be greater than investment so the economy would be running a trade deficit
• B)investment would be greater than saving so the economy would be running a trade deficit
• C)investment would be greater than saving so the economy would be running a trade surplus
• D)saving would be greater than investment so the economy would be running a trade surplus
• E)none of the above

Solve quadratic equations by completing the square.

Interpret the physical meaning of quadratic equations in applied problems.

Use factoring techniques to solve quadratic-like equations.

Analyze and solve quadratic equations with real coefficients.

---

Definitions:

Consumer Surplus

Consumer Surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit consumers receive from a transaction.

Producer Surplus

The difference between what producers are willing to sell a product for and the actual price they receive, representing their benefit or surplus.

Minimum Acceptable Price

The lowest price at which a seller is willing to sell a product or service.

Consumer Surplus

The gap between what consumers are ready and able to shell out for a good or service and what they indeed spend on it.