In the Open-Economy Macroeconomic Model,if Foreign Interest Rates Rise and the U.S

question 41

Multiple Choice

In the open-economy macroeconomic model,if foreign interest rates rise and the U.S interest rate stays the same then,U.S.

• A)net capital outflow rises,so the supply of dollars in the market for foreign exchange shifts right.
• B)net capital outflow rises,so the demand for dollars in the market for foreign exchange shifts right.
• C)net capital outflow falls,so the supply of dollars in the market for foreign exchange shifts left.
• D)net capital outflow falls,so the demand for dollars in the market for foreign exchange shifts left.

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Definitions:

Dim Lights

Reduced lighting conditions that result in lower illumination levels, often creating a relaxed or intimate atmosphere.

Bright Lights

High-intensity illumination, which can influence mood, visibility, and environmental ambiance.

Amplitude

The extent of a vibratory movement, measured from the mean position to an extreme, commonly used in physics to describe waves.

Pitch

The quality of sound governed by the rate of vibrations producing it; the highness or lowness of a tone.