When the U.S.real Interest Rate Falls

question 2

Multiple Choice

When the U.S.real interest rate falls

• A)U.S.purchases of foreign assets and foreign purchases of U.S.assets rise
• B)U.S.purchases of foreign assets rise and foreign purchases of U.S.assets fall
• C)U.S.purchases of foreign assets fall and foreign purchases of U.S.assets rise
• D)U.S.purchases of foreign assets and foreign purchases of U.S.assets fall

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Definitions:

Bridge

A structure built to span physical obstacles without closing the way underneath, such as a body of water, valley, or road, for the purpose of providing passage.

Erection

The process by which erectile tissue fills with blood and becomes firm, typically in response to sexual arousal.

Spinal Reflex

An automatic response controlled by the spinal cord without conscious brain involvement.

Sympathetic Nervous System

The sympathetic nervous system is a part of the autonomic nervous system that prepares the body for physical activity by accelerating the heart rate, constricting blood vessels, and raising blood pressure.