For a Major Country with Extensive Capital Flows, What Is

question 63

Multiple Choice

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

• A) There will be an inflow of capital, a currency depreciation, and increased net exports.
• B) There will be an inflow of capital, a currency depreciation, and reduced net exports.
• C) There will be an outflow of capital, a currency depreciation, and increased net exports.
• D) There will be an inflow of capital, a currency appreciation, and reduced net exports.

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Definitions:

Esteem Needs

According to Maslow's hierarchy of needs, these are the fourth level of human needs, including respect, self-esteem, status, recognition, and strength.

Social Needs

Fundamental human requirements for well-being that include belonging, affection, and social activities, often met through relationships and community involvement.

Physiological Needs

Basic human requirements for survival, such as food, water, shelter, and clothing, according to Maslow's hierarchy of needs.

Job Enlargement

Job design that expands an employee’s responsibilities by increasing the number and variety of tasks assigned to the worker.