If there is capital flight from the United States, then the demand for loanable funds
a. and the supply of dollars in the foreign-exchange market shift right.
b. and the supply of dollars in the foreign-exchange market shift left.
c. shifts left while the supply of dollars in the foreign-exchange market shifts right.
d. shifts right while the supply of dollars in the foreign-exchange market shifts left.
a
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Which of the following is a reason why firms can be more efficient than markets as coordinators of economic activity?
A) economies of scale and scope B) higher transactions charges C) elimination of the principal-agent problem D) all of the above
Economists depict distribution of income by drawing a Lorenz curve above the diagonal
Indicate whether the statement is true or false
When foreigners export goods to the United States
a. they reduce the ability of the U.S. to export products abroad. b. they acquire the dollars that are necessary to purchase goods, services, and assets from Americans. c. they reduce the living standards of Americans. d. they cause the dollar to depreciate.
The classic example of a detrimental externality is
A. education. B. pollution. C. discovery of an AIDS vaccine. D. Mrs. Lewis’ prize-winning rose garden.