If International Capital Flows Are Not Very Responsive to Interest

question 38

Multiple Choice

If international capital flows are not very responsive to interest rates, the initial impact of expansionary fiscal policy will:

• A)result in a significant deterioration in the financial account.
• B)result in a deficit in the overall balance of payments.
• C)be totally ineffective.
• D)lead to a current account surplus.

---

Definitions:

Trend Projection Forecasting

A method of predicting future values by analyzing historical data and identifying patterns or trends over time.

Human Resource

The department in an organization that deals with hiring, training, managing, and retaining employees.

Organizational Strategies

High-level plans that outline how a business will achieve its goals, considering both internal capabilities and external opportunities.

Human Resource Objectives

The goals set by an organization's human resources department to support its workforce and overall business strategy effectively.