A Large Country Imposes Capital Controls That Prohibit Foreign Borrowing

question 5

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 deficit.The imposition of the capital controls will cause

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

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Definitions:

Customer Perspective

An approach that focuses on understanding and fulfilling the needs, expectations, and satisfaction of the customers.

Number Of Returns

The count of items or goods returned to a company by consumers, typically indicating satisfaction levels or issues with the product.

Performance Measurement System

A tool used by businesses to evaluate and assess the effectiveness and efficiency of its operations or the performance of individuals within the organization.

Executive Managers

Individuals who are responsible for strategizing, decision-making, and overseeing the daily operations of a business or organization.