Assume a System of Floating Exchange Rates and High Capital

question 51

Multiple Choice

Assume a system of floating exchange rates and high capital mobility.In response to relatively high domestic interest rates, suppose that foreign investors place their funds in domestic capital markets.The result would be

• A) a depreciation of the domestic currency and a rise in net exports.
• B) a depreciation of the domestic currency and a fall in net exports.
• C) an appreciation of the domestic currency and a rise in net exports.
• D) an appreciation of the domestic currency and a fall in net exports.

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Definitions:

Transvestic Disorder

Paraphilic disorder in which a heterosexual man dresses in women’s clothing as his primary means of becoming sexually aroused.

Cross-dressing

The act of wearing clothing traditionally associated with the opposite gender, often for expression, performance, or personal comfort.

Exhibitionistic Disorder

A mental condition characterized by a compelling urge to expose one’s genitals to an unsuspecting stranger.

Exhibitionists

Individuals who experience a compulsion to expose their genitals to an unsuspecting person as a means of seeking sexual pleasure.