In the Open-Economy Macroeconomic Model, If the U

question 208

Multiple Choice

In the open-economy macroeconomic model, if the U.S. interest rate rises, then its

• A)net capital outflow rises, so the supply of dollars in the market for foreign exchange shifts right.
• B)net capital outflow rises, so the demand for dollars in the market for foreign exchange shifts right.
• C)net capital outflow falls, so the supply of dollars in the market for foreign exchange shifts left.
• D)net capital outflow falls, so the demand for dollars in the market for foreign exchange shifts left.

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Definitions:

Union Shop Clause

A provision in a collective bargaining agreement that requires employees to join the union within a certain period of employment.

Closed Shop Clause

A provision that requires employees to be members of a specific labor union as a condition of their employment.

Agency Shop Clause

A provision in a collective bargaining agreement that requires employees to pay union dues or fees, regardless of whether they are union members.

Section 8

Refers to a provision of the National Labor Relations Act that defines unfair labor practices by employers, unions, or employees.