In an Open Economy, a Decrease in Capital Inflows ________

question 91

Multiple Choice

In an open economy, a decrease in capital inflows ________ the equilibrium domestic real interest rate and ________ the quantity of domestic investment.

• A)increases; increases
• B)increases; decreases
• C)decreases; decreases
• D)decreases; increases

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Definitions:

Nondeclarative Memories

A type of long-term memory that doesn't require conscious thought to recall, often shown through skills and tasks such as riding a bike or playing an instrument.

Implicit

Implied or understood though not directly expressed; involving attitudes, beliefs, or actions that are not directly observable.

Explicit

Clearly expressed or fully stated in the actual text or speech.

Maintenance Rehearsal

Practice of saying some information to be remembered over and over in one’s head in order to maintain it in short-term memory.