If investment opportunities in the U.S. become more attractive to foreigners,
a. the exchange-rate value of the dollar will fall.
b. the current-account balance will shift toward a deficit.
c. the capital inflows to the U.S. will fall.
d. all of the above are true.
B
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Experimental effects, such as the Hawthorne effect,
A) generally are not germane in quasi-experiments. B) typically require instrumental variable estimation in quasi-experiments. C) can be dealt with using binary variables in quasi-experiments. D) are the most important threat to internal validity in quasi-experiments.
When interest rates in the U.S. decline, we can expect net capital outflow to:
A. increase. B. decrease. C. be unaffected. D. be zero.
Which of the following decrease demand for any good or service?
A. Falling incomes and the product is a normal good. B. A decrease in the price of a substitute good. C. Consumer expectations that either prices or income will rise in the future. D. An increase in the number of buyers. E. An unfavorable change in consumer tastes.
Which of the following countries has lower income mobility than the United States?
A. Both of these countries have lower income mobility than the United States. B. Germany C. Neither of these countries have lower income mobility than the United States. D. United Kingdom