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:

Amygdala

The part of the brain responsible for processing reactions to fear.

Frontal Lobe

A region of the brain involved in decision making, problem-solving, control of purposeful behaviors, consciousness, and emotions.

Hippocampus

A region of the brain involved in the formation of new memories and is associated with learning and emotions.

Personality

The combination of characteristics or qualities that form an individual's distinctive character and behavioral patterns.