Figure 32-5 Refer to This Diagram of the Open-Economy Macroeconomic Model to Model

question 365

Multiple Choice

Figure 32-5
Refer to this diagram of the open-economy macroeconomic model to answer the questions below.
-Refer to Figure 32-4. Suppose that U.S. firms desire to purchase more capital in the U.S. The effects of this could be illustrated by

• A) shifting the demand curve in panel a to the right and the demand curve in panel c to the left.
• B) shifting the demand curve in panel a to the right and the supply curve in panel c to the left.
• C) shifting the supply curve in panel a to the right and the demand curve in panel c to the left.
• D) shifting the supply curve in panel a to the right and the supply curve in panel c to the right.

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Definitions:

Smooth Muscle

Involuntary, non-striated muscle that lines the walls of internal organs and blood vessels, controlling their movements.

Motor Neurons

Nerve cells that initiate and conduct impulses controlling the actions of muscles.

Thighs

The part of the human leg between the hip and the knee, composed of several muscles including the quadriceps and hamstrings.

Auditory Cortex

The region of the brain that is responsible for processing auditory information.