In the open-economy macroeconomic model, if foreign interest rates rise and the U.S interest rate stays the same then, U.S
a. net capital outflow rises, so the supply of dollars in the market for foreign exchange shifts right.
b. net capital outflow rises, so the demand for dollars in the market for foreign exchange shifts right.
c. net capital outflow falls, so the supply of dollars in the market for foreign exchange shifts left.
d. net capital outflow falls, so the demand for dollars in the market for foreign exchange shifts left.
a
You might also like to view...
The cost of complying with regulation
A) shifts the ATC curve upward. B) shifts the MC curve downward. C) shifts the demand curve to the right. D) increases the products' price elasticity of demand.
In 2011, the average American earned about $48,000 while the average Nigerian earned about $1,200 . Which of the following statements is likely?
a. The average American purchases more televisions than the average Nigerian. b. The average American has better nutrition and healthcare than the average Nigerian. c. The average American has a longer life expectancy than the average Nigerian. d. All of the above are correct.
Which of the following leads to a lower level of unemployment in the long run?
a. both an increase in the size of the money supply and an increase in the money supply growth rate b. an increase in the size of the money supply but not an increase in the money supply growth rate c. an increase in the money supply growth rate, but not an increase in the size of the money supply d. neither an increase in the size of the money supply nor an increase in the money supply growth rate
Oligopolists that follow the price leadership model:
A. are engaging in implicit, but not explicit, price fixing. B. are violating antitrust laws. C. have chosen to follow the grim-trigger strategy. D. will be unable to overcome the duopolists' dilemma because firms will have an incentive to underprice the firm that is the price leader.