1A In the IS-LM-BoP model, the BoP curve is set at:

The marginal product of capital

The local interest rate

The global interest rate

The level of consumption given smoothing

1B In the IS-LM-BoP model, government spending shifts the:

LM curve

IS curve

None of these

BoP curve

1C The reason capital flows do not resemble those described in the efficient investment model is differing levels of:

Interest rates

Productivity

Labor Ability

Risk Aversion