Multiple Choice
Capital inflows occur if:
A) domestic interest rates are higher than foreign interest rates.
B) domestic interest rates are lower than foreign interest rates.
C) domestic and foreign interest rates are the same.
D) none of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q32: Capital outflows occur if:<br>A)domestic interest rates are
Q33: In February 2002,the euro/dollar exchange rate was
Q34: Exports are:<br>A)positively related to the level of
Q35: Holding everything else constant,a country's exports will
Q36: In the foreign exchange market,the quantity supplied
Q38: A trade surplus means:<br>A)the country has positive
Q39: Borrowing from another country that occurs when
Q40: A trade deficit means:<br>A)the country has positive
Q41: Exports are positively related to domestic income
Q42: As a currency depreciates:<br>A)exports increase and imports