Figure 13-1 -Refer to Figure 13-1. in the Figure Shown, If the Shown

question 69

Multiple Choice

Figure 13-1
-Refer to Figure 13-1. In the figure shown, if the world real interest rate went from 7 to 6 percent, what changes would occur?

• A) There would be an increase in net capital outflow.
• B) The demand for loanable funds curve to shift right.
• C) The supply for loanable funds curve to shift left.
• D) There would be a decrease in net capital outflow.

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Definitions:

Inversely

Describes a relationship where one quantity increases as another decreases at a consistent rate, often used in proportion and inverse variation contexts.

Sixth Root

The sixth root of a number is the value that, when multiplied by itself five more times, gives the original number.

Constant of Proportionality

The fixed value that relates two proportional quantities.

Directly Proportional

A relationship between two variables wherein they increase or decrease at the same ratio.