In the Open-Economy Macroeconomic Model,if the Supply of Loanable Funds

question 30

Multiple Choice

In the open-economy macroeconomic model,if the supply of loanable funds shifts right,then

• A)net capital outflow increases so the demand for dollars in the market for foreign-currency exchange shifts right.
• B)net capital outflow increases so the supply of dollars in the market for foreign-currency exchange shifts right.
• C)net capital outflow decreases so the demand for dollars in the market for foreign-currency exchange shifts left.
• D)net capital outflow decreases so the supply of dollars in the market for foreign-currency exchange shifts right.

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Definitions:

Amygdala

A part of the brain located in the temporal lobe, crucial for emotion processing, fear responses, and memory of emotional reactions.

Frontal Lobe

A region of the brain associated with executive functions such as decision making, problem-solving, and controlling behavior.

Corpus Collosum

A large band of neural fibers connecting the two hemispheres of the brain, facilitating interhemispheric communication.

Ventromedial Cortex

A region of the brain involved in emotional responses, decision-making, and the evaluation of rewards and risks.