Which of the Following Is NOT True Regarding Foreign Interest

question 63

Multiple Choice

Which of the following is NOT true regarding foreign interest rates?

• A)The large flow of funds between countries causes interest rates in any given country to become more susceptible to interest rate movements in other countries.
• B)If a foreign country is experiencing high inflation, its equilibrium interest rate is likely to be higher than the U.S. equilibrium interest rate.
• C)An increase in a foreign country's interest rates will likely decrease demand for U.S. loanable funds by businesses in that country.
• D)All of these are true regarding foreign interest rates.

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Definitions:

Neuron

A specialized cell transmitting nerve impulses; a nerve cell, the fundamental unit of the nervous system encoding and transferring information.

Myelin Sheath

A protective covering that surrounds axons of many neurons, facilitating the faster transmission of electrical impulses along the nerve cells.

Dendrites

Extensions of neurons that receive signals from other neurons and transmit them toward the cell body.

Axon

A long, slender projection of a nerve cell, or neuron, that conducts electrical impulses away from the neuron's cell body to transmit information to different neurons, muscles, and glands.