In the open-economy macroeconomic model, if a country's supply of loanable funds shifts right, then
a. net capital outflow rises, so the exchange rate rises.
b. net capital outflow rises, so the exchange rate falls.
c. net capital outflow falls, so the exchange rate rises.
d. net capital outflow falls, so the exchange rate falls.
b
You might also like to view...
The property that macroeconomic variables fluctuate together in patterns that exhibit strong regularities is called
A) coincidence. B) co-movement. C) correlation. D) coexistence.
If the short run elasticity of demand for widgets is 0.7 and the long run elasticity of demand for widgets is 1.5, an increase in price will ____ total revenue in the short run and ____ total revenue in the long run. a. Increase; increase
b. Increase; decrease. c. Decrease; increase. d. Decrease; decrease.
When a factory pollutes the environment, there are costs associated with the damage to human health, property values, wildlife habitat, reduction of recreation possibilities, or other negative impacts. The term ________________ is used to describe those costs, which fall on third parties unrelated to the business.
a. positive externalities b. additional external costs c. collateral damage d. social externalities
It was once common for people to have servants who helped with the cooking and cleaning. Use the cost disease of the personal services dilemma to explain why these services have declined, even though one would expect an increased use in this age of the two-worker household