Question 11 (1 point) Ceteris paribus, which of the following would cause the real exchange rate to rise? Both an increase in the real interest rate and an increase in foreign demand for U.S. goods and services. An increase in the real interest rate, but not an increase in foreign demand for U.S. goods and services. O An increase in foreign demand for U.S. goods and service, but not an increase in the U.S. real interest rate. Neither an increase in the U.S. real interest rate nor an increase in the demand for U.S. goods and services. Question 12 (1 point) During the third quarter of 2004 Felix the cat produces consumer goods and adds some of those goods to its inventory. During the fourth quarter of 2004, Felix the cat sells the goods at Trader Joe's, with the result that the value of Felix the cat's inventory at the end of the fourth quarter is smaller than the value of its inventory at the end of the third quarter. How do these actions affect the component(s) of fourth-quarter GDP? Othey increase consumption and have no affect on investment they increase consumption and decrease investment they have no affect on either consumption or investment they have no affect on consumption and decrease investment Question 13 (1 point) A perpetuity is a bond like all others except that it pays continuously compounded interest. pays interest only when it matures. never matures will be used to purchase another bond when it matures unless the owner specifies otherwise. Question 1411 point Question 14 (1 point) In the context of international trade, to say that Romania is a small country is to say that Romania can only import goods; it cannot export goods. Romania's choice of which goods to export and which goods to import is not based on the principle of comparative advantage. only the domestic price of a good is relevant for Romania; the world price of a good is irrelevant. O Romania is a price tuker. Question 15 (1 point) Candidate UK seeks to improve equality in an economy. Based on historical observation the result of candidate UK's plan is often an increase in overall output in the economy. additional government revenue since overall income will increase O a reduction in equality. O a reduction in efficiency. Question 16 (1 point) The United States' standard of living depends on the country's ability to prevail over foreign competition. the country's ability to produce goods and services. the total supply of money in the economy the average age of the country's labor force