A Large Country Imposes Capital Controls That Prohibit Foreign Borrowing

question 2

Multiple Choice

A large country imposes capital controls that prohibit foreign borrowing and lending by domestic residents.The country is currently running a financial account surplus.The imposition of the capital controls will cause

• A)net exports to decrease.
• B)real domestic interest rates to rise.
• C)real world interest rates to rise.
• D)desired national saving to fall.

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Definitions:

Structure Concerns

Refers to issues or considerations related to the organization, layout, or framework of a system or entity.

Worker Bee

A term often used metaphorically to describe someone who is industrious and hardworking, usually in a collective or organizational setting.

Leader

A person who guides or directs a group, organization, or country by providing vision, inspiration, and direction.

Get The Work Done

Refers to successfully completing tasks or achieving objectives within the expected or stipulated timeframe, often emphasizing efficiency and effectiveness.