Other things the same, an increase in the U.S. real interest rate induces
a. Americans to buy more foreign assets, which increases U.S. net capital outflow.
b. Americans to buy more foreign assets, which reduces U.S. net capital outflow.
c. foreigners to buy more U.S. assets, which reduces U.S. net capital outflow.
d. foreigners to buy more U.S. assets, which increases U.S. net capital outflow.
c
You might also like to view...
When the government places a tax on a product, the cost of the tax to buyers and sellers
a. is less than the revenue raised from the tax by the government. b. is equal to the revenue raised from the tax by the government. c. exceeds the revenue raised from the tax by the government. d. Without additional information, such as the elasticity of demand for this product, it is impossible to compare the cost of a tax to buyers and sellers with tax revenue.
If the AD curve shifts from year to year and the AS curve does not, then the short run Phillips curve would be
A. downward sloping. B. shifting to the right. C. upward sloping. D. shifting to the left.
The ratio at which one country trades a domestic product for imported product is that country's
A. comparative advantage. B. cost ratio. C. terms of trade. D. absolute advantage.
According to the law of demand, an increase in the price of Pepsi will
A. increase the quantity of Pepsi demanded. B. decrease the quantity of Pepsi demanded. C. increase the demand for Pepsi. D. decrease the demand for Pepsi.