If a Decreases, Then B Will Also Decrease

question 62

Multiple Choice

If A decreases, then B will also decrease. The graph relating the two variables A and B is:

• A) Vertical
• B) Downward-sloping
• C) Upward-sloping
• D) Horizontal

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Definitions:

Real Interest Rates

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to an investor.

Net Capital Outflow

The difference between a country's total exports of capital and total imports of capital over a certain period, indicating how much capital is flowing out of the country in comparison to what is coming in.

U.S. Bonds

Debt securities issued by the United States Department of the Treasury to finance government spending as an alternative to taxation.

NX

Stands for Net Exports, which is the difference between a country's total value of exports and total value of imports.