Use the Following to Answer Questions

question 368

Multiple Choice

Use the following to answer questions:
-In the absence of international capital flows,the equilibrium interest rate in the Canadian market for loanable funds is 3%,while in Germany,it is 7%.International borrowing and lending between Canada and Germany could result in a common interest rate of _____% and _____.

• A) 5;capital inflows to Canada matching the capital outflows from Germany
• B) 3;massive capital inflows from Germany to Canada
• C) 4;capital outflows from Canada matching the capital inflows to Germany
• D) 7;massive capital inflows from Canada to Germany

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Definitions:

Agents and Brokers

Intermediaries who facilitate the buying and selling of goods or services for a commission.

Marketing Research

Collecting and evaluating information to support marketing decision making.

Market Segmentation

Process of dividing a total market into several relatively homogeneous groups.

Consumer Behavior

Actions of ultimate consumers directly involved in obtaining, consuming, and disposing of products and the decision processes that precede and follow these actions.