Other things the same, if the price level falls, domestic interest rates
a. rise, so domestic residents will want to hold more foreign bonds.
b. rise, so domestic residents will want to hold fewer foreign bonds.
c. fall, so domestic residents will want to hold more foreign bonds.
d. fall, so domestic residents will want to hold fewer foreign bonds.
c
You might also like to view...
When a tax is based on the difference between the market value of the taxpayer's assets and liabilities, it is called
A. a difference tax. B. a wedge tax. C. a personal net worth tax. D. an implied liability tax.
Which of the following is a correct statement regarding the balance sheet of the Federal Reserve?
A) Fed assets = Fed liabilities + Federal Reserve notes B) Fed assets = Fed liabilities + Fed capital accounts C) Fed assets = Fed liabilities + bank reserves D) Fed assets = bank reserves + Federal Reserve notes outstanding
A person who lives in a good-climate city says, "It's expensive to live here, but at least the climate is free." In terms of a theory advanced in the textbook, this person has either forgotten or is unaware that
A) New York City is not a good-climate city and it is expensive to live there. In other words, not all good-climate cities are expensive and not all bad-climate cities are cheap. B) part of the reason it's expensive to live in the city is because of the good climate. C) good-climate cities have more outdoor entertainment entities and activities and therefore people have to pay higher taxes to support those entities and activities. D) there is a sunshine tax in most of the country - the more hours of sunshine a day, the higher the tax. E) none of the above
The large increase in mandatory spending over recent years is due largely to ______.
a. wars and terrorism b. high immigration c. an aging population d. poorly maintained roads