Multiple Choice
Because the United States is highly integrated with the international capital market, international capital flows tend to
A) counteract the negative effect on aggregate demand of lower interest rates.
B) counteract the positive effect on aggregate demand of higher interest rates.
C) strengthen the negative effects on aggregate demand of higher interest rates.
D) strengthen the negative effects on aggregate demand of lower interest rates.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: International trade tends to lower the value
Q2: Figure 36-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 36-7
Q3: Figure 36-9<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 36-9
Q4: A currency appreciation should<br>A)reduce net exports and
Q5: In an open economy, the government deficit
Q7: Suppose that the Fed decides to increase
Q8: Figure 36-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 36-7
Q9: Figure 36-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 36-7
Q10: When the dollar depreciates, the prices of
Q11: Expansionary fiscal policy in an open economy<br>A)leads