In an Open Economy, an Increase in Capital Inflows ________

question 13

Multiple Choice

In an open economy, an increase 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:

Meat Powder

A substance used in classical conditioning experiments, typically as a stimulus for eliciting salivary responses from an animal.

Automatic Racial Attitudes

Unconscious biases or judgments towards people based on their race.

Deliberate Attitudes

Consciously held evaluations or opinions about objects, people, or concepts.

Severe Hazing

The practice of subjecting newcomers to abusive or humiliating trials and rituals, often under the guise of initiation into a group, which can be extreme in nature.