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:

Alternatives

Different options or strategies available for consideration when making a decision.

Machiavellianism

is a personality trait characterized by a manipulative nature, a lack of morality, and a focus on personal gain.

Networking

Building and maintaining relationships and connections with others, typically for professional or social purposes.

Referent Power

A form of influence based on identification with, adoration of, or respect for the leader or authority figure.