When the U.S. real interest rate rises, foreigners will want to purchase
a. more U.S. assets so U.S. net capital outflow rises.
b. more U.S. assets so U.S. net capital outflow falls.
c. less U.S. assets so U.S. net capital outflow rises.
d. less U.S. assets so U.S. net capital outflow falls.
b
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If the government uses stabilization policies to reduce inflation, the economy may have to suffer
a. higher rates of real GDP growth. b. higher rates of unemployment. c. lower rates of unemployment. d. higher rates of price level growth.
A congestion toll imposed on a highway driver to force the driver to take into account the increase in travel time she imposes on all other drivers is an example of internalizing the externality
a. True b. False Indicate whether the statement is true or false
A country recently had GDP of $1,200 billion. Its consumption expenditures were $700 billion, its government spent $200 billion, and it had domestic investment of $175 billion. What was the value of this country's net capital outflow? Show your work
A bank has $10,000 in excess reserves and the required reserve ratio is 20 percent. This means the bank could have __________ in checkable deposit liabilities and __________ in total reserves
A) $80,000, $10,000 B) $100,000, $20,000 C) $50,000, $25,000 D) $100,000, $30,000