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Figure 32-5 Refer to This Diagram of the Open-Economy Macroeconomic Model to Model

Question 365

Multiple Choice

Figure 32-5
Refer to this diagram of the open-economy macroeconomic model to answer the questions below. Figure 32-5 Refer to this diagram of the open-economy macroeconomic model to answer the questions below.   -Refer to Figure 32-4. Suppose that U.S. firms desire to purchase more capital in the U.S. The effects of this could be illustrated by A)  shifting the demand curve in panel a to the right and the demand curve in panel c to the left. B)  shifting the demand curve in panel a to the right and the supply curve in panel c to the left. C)  shifting the supply curve in panel a to the right and the demand curve in panel c to the left. D)  shifting the supply curve in panel a to the right and the supply curve in panel c to the right.
-Refer to Figure 32-4. Suppose that U.S. firms desire to purchase more capital in the U.S. The effects of this could be illustrated by


A) shifting the demand curve in panel a to the right and the demand curve in panel c to the left.
B) shifting the demand curve in panel a to the right and the supply curve in panel c to the left.
C) shifting the supply curve in panel a to the right and the demand curve in panel c to the left.
D) shifting the supply curve in panel a to the right and the supply curve in panel c to the right.

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