If the risk of holding assets in foreign countries rises relative to the risk of holding U.S assets, then
a. U.S. net capital outflow rises which increases the U.S. exchange rate.
b. U.S. net capital outflow rises which decreases the U.S. exchange rate.
c. U.S. net capital outflow falls which increases the U.S. exchange rate.
d. U.S. net capital outflow falls which decreases the U.S. exchange rate.
c
You might also like to view...
A person who has given up searching for work is called:
a. frictionally unemployed. b. structurally unemployed. c. a discouraged worker. d. unemployed.
The amount by which people will increase or decrease their purchases when prices change
A) is typically greater in the case of luxuries than in the case of necessities. B) is typically less for business firms than for households because business firms can more easily borrow to maintain purchasing patterns. C) is typically less for business firms than for households because business firms must have certain goods to remain in operation. D) tends to be greater over longer periods of time because it takes time to invent and to discover substitutes. E) will be approximately zero unless the demand also changes.
The winner's curse is the tendency in certain types of auctions for:
A. unsophisticated bidders to overpay whenever they win. B. winners to be unable to win a subsequent auction. C. winners to regret spending their money on the auctioned item. D. the owner of the item up for auction to unfairly drive up auction prices.
The marginal propensity to consume is defined as the:
a. fraction of total income not spent on consumption. b. proportion of any change in income that is spent on consumption. c. fraction of total income spent on consumption. d. fraction of a change in income that is saved.