If a Country Experiences a Tremendous Increase in the Demand

question 39

Multiple Choice

If a country experiences a tremendous increase in the demand for loanable funds as many new infrastructure building projects are initiated, then the interest rate will

• A)rise, there will be a decrease in net capital outflow, and the real exchange rate will fall.
• B)rise, there will be a decrease in net capital outflow, and the real exchange rate will rise.
• C)fall, there will be an increase in net capital outflow, and the real exchange rate will rise.
• D)fall, there will be an increase in net capital outflow, and the real exchange rate will fall.

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Definitions:

High School

An educational institution that provides secondary education to adolescents, typically covering grades 9 through 12.

College

An institution of higher learning that offers undergraduate programs, often leading to a bachelor's degree in a specific field of study.

Labor Force

The total number of people who are employed and unemployed but seeking work in an economy.

Schooling In Capitalist America

Analysis of how the educational system in capitalist societies serves to reinforce class structure and maintain social inequalities.