A Decrease in Nominal Income Will Lead to an Increase

question 167

True/False

A decrease in nominal income will lead to an increase in the interest rate.

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Definitions:

Current Account Deficit

When a country's total imports of goods, services, and transfers exceed its total exports.

Foreigners

Individuals or entities from one country who are living in, conducting business, or present in another country.

Assets

Resources owned by an individual or business that have value and can be used to meet debts, commitments, or legacies.

Net Creditor Nation

A country that has lent more money to other countries than it has borrowed from them.