Use the Following to Answer Questions

question 41

Multiple Choice

Use the following to answer questions:
Figure: International Capital Flows
-(Figure: International Capital Flows) Look at the figure International Capital Flows. Assume that each country's equilibrium interest rate is 4%. To reconcile the apparent disequilibrium in both markets, assuming that assets and liabilities are viewed as homogeneous, capital _____ will _____ interest rates.

• A)outflow from the United States; lower U.S.
• B)outflow from Britain; lower British
• C)outflow from Britain; raise British
• D)inflow to the United States; raise U.S.

Recognize strategies to increase helping behavior among individuals.

Understand the relationship between mood, time pressure, and willingness to help.

Identify how pluralistic ignorance and diffusion of responsibility contribute to the bystander effect.

Understand the impact of stress and related behaviors on workplace performance.

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Definitions:

Price Ceiling

Price Ceiling is a government-imposed limit on how high a price can be charged for a product or service, intended to protect consumers from excessive costs.

Market Equilibrium

Market equilibrium is a condition in a market where the quantity demanded equals the quantity supplied, resulting in no pressure for the price to change.

Consumer Surplus

The gap between the total sum consumers are ready and able to spend on a good or service, and the sum they actually do spend.

Market Equilibrium

The condition in which the quantity of a product supplied is equal to the quantity demanded, leading to a stable market price.