Other Things the Same,a Decrease in the U

question 92

Multiple Choice

Other things the same,a decrease in the U.S.real interest rate induces

• A)Americans to buy more foreign assets,which increases U.S.net capital outflow.
• B)Americans to buy more foreign assets,which reduces U.S.net capital outflow.
• C)foreigners to buy more U.S.assets,which reduces U.S.net capital outflow.
• D)foreigners to buy more U.S.assets,which increases U.S.net capital outflow.

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Definitions:

Price Elasticity

A measure of how responsive the quantity demanded of a good is to a change in its price.

Demand Curve

The number of units of a product that people would be willing to purchase at different price levels.

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period.

Substitute Choices

Options available that can replace or serve as alternatives to others, usually in the context of consumer goods or services.