In the open-economy macroeconomic model, if the supply of loanable funds increases, net capital outflow
a. and the real exchange rate increase.
b. and the real exchange rate decrease.
c. increases and the real exchange rate decreases.
d. decreases and the real exchange rate increases.
c
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Diseconomies of scale can be caused by
A) the law of diminishing returns. B) bureaucratic inefficiencies. C) increasing advertising and promotional costs. D) All of the above
If average Americans start to pay off the huge credit card debt they now hold, then
A) a shift in the supply of loanable funds will cause interest rates to rise. B) a shift in the supply of loanable funds will cause interest rates to fall. C) a shift in the demand for loanable funds will cause interest rates to rise. D) a shift in the demand for loanable funds will cause interest rates to fall. E) there will be an excess demand for loanable funds.
If supply is perfectly inelastic and demand increases,
a. price falls and output rises. b. price rises and output falls. c. price rises and output remains unchanged. d. price rises and output rises.
As a scientist, an economist's main professional objective is to become wealthy
a. True b. False