U.S.net Capital Outflow

question 14

Multiple Choice

U.S.net capital outflow

• A)is a source of the supply of loanable funds,and the source of the supply of dollars in the foreign exchange market.
• B)is a source of the supply of loanable funds,and a source of the demand for dollars in the foreign exchange market.
• C)is a part of the demand for loanable funds,and the source of the supply of dollars in the foreign exchange market.
• D)is a part of the demand for loanable funds,and a source of the demand for dollars in the foreign exchange market.

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Definitions:

Monetary Policies

Government or central bank policies aimed at controlling the money supply and interest rates to influence economic activity.

Money Supply

The sum total of all assets in the form of money within an economy at a specific instance, including all forms of cash, coinage, and the funds kept in both savings and current accounts.

Purchasing Power Parity

A theory in economics that compares different countries' currencies through a "basket of goods" approach, aiming to determine the relative value of two currencies.

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much of currency A is needed to purchase a unit of currency B.