Solved

Which of the Following Is the Most Likely Response to an Increase

Question 25

Multiple Choice

Which of the following is the most likely response to an increase in the U.S.real interest rate?


A) a London bank purchases a U.S.bond instead of a Japanese bond it had considered purchasing
B) U.S.firms decide to buy more capital goods
C) a U.S.citizen decides to put less money in his savings account than he had planned.
D) All of the above are consistent.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q20: Other things the same,a higher real interest

Q21: Figure 32-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 32-1

Q22: Which of the following is considered part

Q23: Other things the same,if the real interest

Q24: Other things the same,a decrease in the

Q26: In an open economy,the source of the

Q27: Other things the same,an increase in the

Q28: In an open economy,<br>A)net capital outflow =

Q30: Figure 32-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 32-2

Q148: The value of net exports equals the