If the risk of buying U.S. assets rises because it is discovered that lending institutions had not carefully evaluated borrowers prior to lending them funds, then
a. net capital outflow and the real exchange rate will rise.
b. net capital outflow will rise and the real exchange rate will fall.
c. net capital outflow will fall and the real exchange rate will rise.
d. net capital outflow and the exchange rate will fall.
b
You might also like to view...
From the beginning of the Great Recession in December 2007 until September 2013, the average duration of unemployment in the United States averaged
A) 13.5 weeks. B) 22 weeks. C) 31.3 weeks. D) 41 weeks.
Monetarists argue that the demand for money is unresponsive to interest rates, i.e. depends on income only, produces a
A) vertical LM function. B) horizontal LM function. C) vertical IS function. D) horizontal IS function.
When no one owns a particular resource
A) property rights are clearly defined. B) individuals have legal recourse for any damages caused to their resource. C) no one has any incentive to consider externality spillovers associated with that resource. D) positive externalities will arise.
Approximately ____ percent of U.S. adults who use the Internet are active on Facebook.
A. 60 B. 70 C. 80 D. 50 E. 40