A Balloon Is Filled with Helium at Sea Level, and Then

question 64

Multiple Choice

A balloon is filled with helium at sea level, and then taken into the mountains to an elevation of 7500 feet. Assuming the temperatures are the same, what will happen to the balloon?

• A)The balloon will compress because the lower pressure will increase the speed of the molecules.
• B)Nothing happens to the balloon because pressure has no affect on the behavior of gases.
• C)The balloon expands because the molecules get bigger.
• D)The balloon expands because the molecules move faster.
• E)The balloon will expand because the external pressure in the mountains is lower.

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Definitions:

Real Exchange Rate

The rate at which the goods and services of one country can be exchanged for those of another, adjusted for inflation.

National Saving

The total amount of savings generated within a country, typically calculated as the sum of private and public savings after accounting for investments and budget deficits.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of assets, usually expressed as an annual percentage rate.

Net Capital Outflow

A contrast in the buying of foreign assets by residents of a country and the acquisition of its assets by non-residents.