Open market sales A. increase the price level and real GDP. H. decrease the price level and real GDP. C. increase the price level and decrease real GDP D. decrease the price level and increase the real GDP. 7. Which of the following would be U.S foreign direct investment? A. your U.Shaved mutual fund buys stock in Eastern European companies. It a Swiss bank buys a U.S government bond. C a U.S.citizen opens a guitar store in Hong Kong D. 'a German tractor factory opens a plant in Peoria. & You ped money in an account that earns 6 percent, The inflation rate is 3 percent, and your marginal tax rate is 25 percent. What is your after tax real cake of interest? A. 3:4 percent. I. 18 percent D. 1.5 percent Because of diminishing returns to capital, if a country were to increase its saving ric, in the long ran it would also increase it's A. level of income A growth rate of income Co powith rate of productivity. D all of the above are conect, 10. The discount rale is A the interest rate the Fol charges banks. Home divided by the difference between one and the reserve mills C. the interest rate banks receive on reserve deposits with the Fell. D.The interest male that banks charge on overnight loans to other banks. 1 1 7Which of the following policy alternatives would be an appropriate response to a deccase in investment demand by a government that wants to stabilize outpork A. decrease government expenditures. H. increase the mancy supply C. decrease fixes. D. decrease the interest rate. 12 According to the sticky wage theory of the short run aggregate supply if workers and finns expected prices to rise by 3 percent but instead they rise by 2 percent, real wages. A. rise. so firms will hire more workers. B rise, so lines will hire fewer workers C. fall, so firms will hire more workers. D, fall, so firms will hire fewer workers