If the Nominal U

question 47

Multiple Choice

If the nominal U.S. return (on an investment in a foreign instrument that earns the nominal foreign interest rate) is greater than the nominal foreign return plus the exchange rate adjustment, then lenders will supply ____ funds in the U.S. market and borrowers will borrow ___ funds in foreign markets.

• A)less, less
• B)more, more
• C)more, less
• D)less, more

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Definitions:

Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry, fear, or anxiety that interferes with daily activities.

Positive Symptoms

In psychology, symptoms that involve the presence of abnormal behaviors or experiences, such as hallucinations or delusions, often seen in schizophrenia.

Schizophrenia

A severe mental disorder characterized by distortions in thought, perception, emotions, language, sense of self, and behavior.

Hallucinations

Perceptions in the absence of external stimuli that are experienced as real, such as seeing, hearing, or feeling something that isn't there.