If Capital Is Perfectly Mobile Internationally, Then

question 36

Multiple Choice

If capital is perfectly mobile internationally, then

• A)significant differences in interest rates across countries can persist over a long time
• B)one country's interest rates can be substantially higher than the world interest rate over the long run
• C)countries with interest rates much lower than in the rest of the world will experience an outflow of capital
• D)an increase in U.S. interest rates will worsen the U.S. balance of payments since U.S. banks are more willing to lend internationally
• E)all of the above

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Definitions:

Emerging Adulthood

A phase of development between adolescence and full-fledged adulthood, typically characterized by exploration and instability.

Infertility

The inability to conceive a child after a year or more of regular sexual intercourse without the use of contraception.

Moral Development

The process through which individuals grow in understanding and differentiate right from wrong, shaping their values, ethics, and principles over time.

Gilligan's Theory

Carol Gilligan's psychological theory emphasizing the differences in moral development between males and females.