Which of the Following Is True

question 23

Multiple Choice

Which of the following is true?

• A)​When foreigners supply more funds than they demand, there is a capital inflow.
• B)​When foreigners demand more funds than they demand, there is a capital outflow.
• C)​Capital flows will tend to move real interest rates in different countries closer to one another.
• D)​All of the above are true.

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Definitions:

Marginal Rate

A measure of the change in one variable compared to a unit change in another variable.

Sailboats

Wind-powered boats used for recreation, sport, or transportation, showcasing a blend of traditional and modern navigational technology.

Surfboards

Long, narrow boards used for riding waves in the sport of surfing.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing one option over another.