In the Open-Economy Macroeconomic Model,if the Supply of Loanable Funds

question 131

Multiple Choice

In the open-economy macroeconomic model,if the supply of loanable funds increases,the interest rate

• A)and the real exchange rate increase.
• B)and the real exchange rate decrease.
• C)increases and the real exchange rate decreases.
• D)decreases and the real exchange rate increases.

---

Definitions:

Physiological Needs

basic physical requirements for human survival, such as air, water, food, shelter, and sleep, representing the base layer of Maslow's Hierarchy of Needs.

Physical Closeness

The proximity or physical distance between individuals, which can impact communication, collaboration, and interpersonal relationships.

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Productivity

The measure of efficiency in which goods or services are created, often evaluated as the output per unit of input.