For a Major Country with Extensive Capital Flows, What Is

question 176

Multiple Choice

For a major country with extensive capital flows, what is the effect of an increase in interest rates?

• A)a currency depreciation and increased net exports 
• B)a currency depreciation and reduced net exports 
• C)a currency appreciation and increased net exports 
• D)a currency appreciation and reduced net exports

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Definitions:

Cash Dividends

Money paid out to shareholders by a corporation, often as a portion of the company's profits.

Journal Entries

Records of financial transactions in the double-entry bookkeeping system, showing debits and credits made in accounts to maintain the ledger.

Available-For-Sale Investments

Financial assets not classified as held-to-maturity or trading securities, which can be sold in the financial markets.

Unrealized Gain

The increase in the value of an investment that has not been sold yet, and thus, the gain is not yet realized as actual income.