The net capital inflow is
a. positively related to the domestic interest rate minus the foreign interest rate.
b. negatively related to the domestic interest rate minus the foreign interest rate.
c. positively related to the exchange rate.
d. negatively related to the exchange rate.
e. both a and c.
A
You might also like to view...
If the state uses a uniform standard, show that such a ruling would not be cost-effective. Which firm should be abating more, and which firm should be abating less?
Consider the environmental problem created by two paint companies that release chromium wastes into a nearby stream. The state authorities set a standard for the waterway that requires a combined abatement level (A) for chromium of 15 units. Suppose that the two firms, firm 1 and firm 2, face the following marginal abatement cost equations: MAC1 = 3.2A1 and MAC2 = 0.8A2, where costs are measured in thousands of dollars.
What situation gives rise to a surplus?
A) The market clearing price of the good is too high. B) The current price of the good is below its market clearing price. C) The current price of the good is above its market clearing price. D) Supply of the good decreases, but the market price is not permitted to change.
What distinguishes the short run from the long run?
A. In the short run, some inputs are fixed, and in the long run, some inputs are fixed. B. In the short run, all inputs are variable, and in the long run, all inputs are variable. C. In the short run, all inputs are variable, while in the long run, some inputs are fixed. D. In the short run, some inputs are fixed, while in the long run, all inputs are variable.
Saving is an example of
A. exchanging capital for cash. B. trading present benefits for future benefits. C. exchanging scarce resources for unlimited resources. D. trading future benefits for present benefits.