Free Flow of International Assets Is Desirable Because It Allows

question 9

Multiple Choice

Free flow of international assets is desirable because it allows countries to:

• A) borrow when times are bad in order to smooth consumption.
• B) borrow when times are good in order to increase consumption.
• C) buy in higher-value asset markets.
• D) hold gold.
• E) maintain price stability.

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Definitions:

Profile Head

An artistic representation of a person's face from the side view, commonly found in various forms of art to focus on facial features and expressions.

Mesopotamia

An ancient region located in the eastern Mediterranean, roughly comprising modern-day Iraq, Kuwait, and parts of Syria, Turkey, and Iran, known as one of the cradles of civilization where writing, agriculture, and cities first arose.

Palace At Knossos

An archaeological site on the island of Crete, considered Europe’s oldest city, and the ceremonial and political center of the Minoan civilization.

Minotaur

The mythical beast, half man and half bull, that inhabited the labyrinth of the Minoan palace at Knossos.